US SEC and CFTC to Operate with Three Commissioners Following Key Resignation
Following the departure of Hester Peirce from the US Securities and Exchange Commission (SEC), key US financial regulators SEC and CFTC will be left with just three commissioners. Peirce, widely recognized as “Crypto Mom” within the crypto community for her stance on digital assets, steps down two months before her term ended. This will leave SEC operating with two commissioners and the Commodity Futures Trading Commission (CFTC) with one, an uncommon historic circumstance for these agencies overseeing crypto regulation in the US, while the White House has yet to announce plans for new appointments.
Departure of Hester Peirce and Current Status of SEC and CFTC Commissions
Hester Peirce, who served as a commissioner with the SEC for eight years, is leaving the agency this Friday, two months before the 18-month extension of her second term ends. Known in the crypto community as “Crypto Mom” for her supportive stance on digital assets, her exit leaves the SEC with two commissioners: Chair Paul Atkins and Mark Uyeda, both Republicans. The SEC is expected to normally have five commissioners, forming a bipartisan panel.
Situation at the Commodity Futures Trading Commission (CFTC)
Since December 2025, when Acting Chair Caroline Pham departed, the CFTC has been led solely by Chair Michael Selig. This reduction to a single commissioner is rare for the agency responsible for overseeing many aspects of crypto regulation and enforcement.
Appointment Process for New Commissioners
Under federal law, only the US president can nominate replacements to fill vacant seats at the SEC and CFTC. All current members, except Mark Uyeda who was appointed under the Biden administration in 2022, were nominated by Donald Trump. Despite this, the White House has not publicly announced any nominations or intentions, although a representative told media that Trump plans to nominate candidates “in the near future.”
Political Context and Senate Reaction
In a June letter to President Trump and Senate Majority Leader John Thune, Senate Democrats stressed the Congress’s intention for these boards to be bipartisan and to regulate vital parts of American life, including crypto regulation. They expressed concern that the Trump administration seems intent on retaining full control over these agencies with little interest in bipartisan cooperation with Congress.
Advancing Crypto Regulation Without Full Commissions
Despite operating with incomplete leadership and without Congressional legislation, both agencies continue to advance crypto regulation through rulemaking. The Digital Asset Clarity (CLARITY) Act, intended to grant the CFTC greater authority over digital asset oversight, recently failed in the Republican-controlled Senate. With no Congressional action, the SEC and CFTC have issued varying interpretations of federal laws related to token issuers: the SEC provides staff guidance on investment contracts, while the CFTC clarifies blockchain recordkeeping practices.
Why it matters
This news highlights a critical personnel shortage at the main regulatory bodies overseeing the US cryptocurrency market—SEC and CFTC—impacting the pace and direction of industry regulation. Operating with an incomplete set of commissioners complicates coordinated decision-making, and without Congressional legislation, the agencies rely on their own rulemaking and interpretations. This creates uncertainty for market participants and underscores the need for timely appointments and legislative efforts to provide clarity and stability in digital asset regulation in the United States.
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