SEC Eases Quorum Rule, Allowing One Commissioner to Advance Some Crypto Rules
Summary
- The U.S. SEC eased its quorum requirements, making it possible under certain conditions for a single commissioner to carry out cryptocurrency-related rulemaking.
- The SEC and CFTC are pursuing regulatory decisions related to the roughly $3 trillion cryptocurrency market with just three commissioners in total as leadership vacancies persist.
- With the Digital Asset Market Structure bill delayed in Congress, the SEC and CFTC are continuing their own cryptocurrency rulemaking under existing legal authority.
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The U.S. Securities and Exchange Commission has eased its quorum requirements, allowing a single commissioner under certain conditions to move forward with cryptocurrency-related rulemaking.
Cointelegraph reported on October 13 that the SEC published a final rule on September 30 changing its quorum requirements. The rule took effect on October 2.
Under the revision, one commissioner can constitute a quorum if specific conditions are met when only two SEC commissioners remain in office. The change does not allow a single commissioner to vote on every rulemaking matter.
The SEC and the Commodity Futures Trading Commission are pursuing regulatory decisions tied to the roughly $3 trillion cryptocurrency market with just three commissioners between them, as leadership vacancies persist at both agencies. Each agency was designed to have five commissioners.
With the Digital Asset Market Structure bill stalled in Congress, the SEC and CFTC are moving ahead with their own rulemaking under existing legal authority. The CFTC also said it plans to advance a proposal on cryptocurrency exchange regulation in October.
The White House has yet to announce additional nominees to fill the vacancies at the two agencies. As a result, decision-making authority over crypto rulemaking could remain concentrated among a small number of commissioners, Cointelegraph reported.
