Two of the United States’ top financial regulatory agencies charged with overseeing digital assets, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), will soon operate with a combined total of just three commissioners. This follows the departure of Hester Peirce from the SEC, an event that will leave both bodies at historically low staffing levels at the commissioner level.
Peirce exits as SEC nears historic low
Hester Peirce, known in the digital asset sector as “Crypto Mom” for her support of clearer regulation in the industry, will step down from her role as SEC commissioner on Friday after eight years of service. Peirce’s departure comes approximately two months before the end of her 18-month term extension and marks just the second time in the agency’s history it will operate with a mere two commissioners.
Currently, the SEC’s leadership is comprised of Chair Paul Atkins and Commissioner Mark Uyeda, both of whom are Republicans. The SEC typically maintains a five-member, bipartisan panel to ensure regulatory balance and thorough oversight of the US financial markets.
The CFTC, which oversees futures and derivatives markets and plays a significant role in digital asset enforcement, has been led solely by Chair Michael Selig since December 2025, following the departure of acting chair Caroline Pham. Selig has continued to direct policy and enforcement matters as the agency’s sole commissioner.
Mini dictionary: Commodity Futures Trading Commission (CFTC), an independent US federal agency responsible for regulating the derivatives, futures, and options markets, including segments of the cryptocurrency industry.
White House slow to fill commissioner vacancies
The authority to nominate new commissioners for both the SEC and CFTC rests exclusively with US President Donald Trump, under federal law. Despite multiple vacancies, the White House has yet to announce any nominations for the open positions. Most current commissioners were originally nominated by Trump, except Mark Uyeda, who was appointed under President Joe Biden in 2022.
A White House official stated that Trump intends to nominate new members for both agencies “in the near future.” However, CNBC reported on September 4 that White House officials had been reviewing four potential candidates for the CFTC commissioner roles, but no names have been made public and no nominations have been formalized.
According to a spokesperson, Selig welcomed the arrival of new commissioners once nominations and Senate confirmations take place, and emphasized the agency’s preparedness to oversee its regulatory responsibilities in the evolving crypto market.
Selig welcomes new commissioners to the CFTC once they are nominated and confirmed by the US Senate, while maintaining the agency is fully capable of overseeing its role in the crypto sector.
Senate Democrats in a June letter to President Trump and Senate Majority Leader John Thune emphasized the bipartisan mandate of commissions like the SEC and CFTC. The letter expressed concern that the Trump administration was “intent on ensuring that it retains complete control over these agencies, with little interest in working in good faith with Congress.”
Regulatory challenges without full leadership
Both the SEC and CFTC are currently advancing crypto regulation primarily through rulemaking, as lawmakers have yet to pass major digital asset legislation. In early September, industry stakeholders called on Congress to approve the Digital Asset Clarity (CLARITY) Act, but the bill failed in the Senate, which is controlled by Republicans.
The CLARITY Act aimed to grant expanded authority to the CFTC over digital assets, shifting some oversight from the SEC. In its absence, the two agencies continue to announce separate interpretations of existing federal laws. The SEC has provided staff guidance about how investment contracts should be regulated, while the CFTC has set out its own rules for blockchain recordkeeping by companies.
Congress designed these boards and commissions to be bipartisan and gave them the authority to regulate some of the most vital and significant parts of American life, but currently there are concerns about their effective operation with these vacancies.
The continued lack of appointed commissioners adds complexity to the regulatory landscape, as the agencies rely on limited leadership to address pressing issues in the crypto sector.
