A crypto market valued at approximately 3 trillion USD in the U.S. will be left with only three commissioners across two major financial regulatory agencies responsible for oversight as of October 2. According to data from Cointelegraph, no candidates have been officially nominated for the seven vacant commissioner seats at the SEC and CFTC.
The most notable shake-up occurred at the SEC, where Commissioner Hester Peirce, widely known to the community as “Crypto Mom,” stepped down on Friday, roughly two months ahead of the end of her second term. This departure leaves the SEC’s five-member commission with just two Republican members—Chair Paul Atkins and Mark Uyeda—marking only the second time in U.S. securities history that the agency has operated with just two commissioners.
The staffing shortage at the CFTC has lasted even longer. Since Commissioner Caroline Pham stepped down in December 2025, Chair Michael Selig has been running the agency alone. Speaking with Cointelegraph, Selig maintained that the CFTC remains “fully capable” of regulating crypto within its jurisdiction, while standing ready to welcome new commissioners once nominations and Senate confirmations take place.
Underlying challenges behind the leadership vacuum
In reality, personnel decisions rest entirely with the President, but progress from the White House remains slow. Although an official asserted that President Trump would soon release a list of nominees, and CNBC reported (September 4) that 4 candidates for the CFTC have passed preliminary screening, specific details have yet to be disclosed. Among current personnel, Uyeda is the only one appointed by former President Biden in 2022.
The political backdrop further complicates the situation. Despite a Republican-controlled Senate and intense lobbying across the industry, the CLARITY Act still failed to pass this month. The absence of a legislative framework redefining the CFTC’s role has forced both agencies to turn to alternative tools: the SEC issued staff guidance on investment contracts, while the CFTC provided guidance on blockchain ledger applications. Confronted with this reality, Democratic Senator Schumer sent a letter to Congress emphasizing the agencies’ originally bipartisan operating structure and suggesting that the current administration lacks the goodwill for bicameral cooperation.
With the legislative process at a standstill, market oversight has effectively become entirely reliant on the discretion of the few remaining commissioners. In the absence of comprehensive legislation, any adjustments to internal guidance—even without congressional approval—could trigger immense ripple effects across token projects.
Observers remain skeptical about the enforcement capacity of the remaining three commissioners, especially as the market continues to expand into tokenized assets and prediction markets. The crux of the issue now lies with the President’s decision, and the pace of nominations from the White House will be the truest measure of commitment to the regulatory framework that the crypto industry is striving toward.