WASHINGTON, DC – AUGUST 19: Chairman of the U.S. Securities and Exchange Commission (SEC) Paul Atkins (L), Commodity Futures Trading Commission (CFTC) Chairman Michael Selig attend a summit of crypto and technology leaders in the Roosevelt Room of the White House on August 19, 2026 in Washington, DC. President Trump held the meeting with cryptocurrency business leaders to discuss regulatory frameworks for digital assets and artificial intelligence. Currently, the CLARITY Act, the landmark bill that would define SEC and CFTC jurisdiction over digital assets, remains stalled in the Senate. (Photo by Alex Wong/Getty Images)
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As Congress returns from recess, a pair of empty regulator benches at the SEC and CFTC is emerging as an unexpected obstacle in the push to advance the Clarity Act — raising fresh questions about whether either agency can deliver meaningful crypto rules if the Senate’s cloture vote stalls.
At the heart of market structure legislation is the process for determining when a digital asset is a security or a commodity. That’s why agriculture committees in both chambers have had the pen on drafting the landmark legislation, alongside the financial and banking committees.
Yet the corresponding regulatory bodies are down key members of leadership and have no Democrats in their ranks.
The Securities and Exchange Commission is about to become a commission of two when Commissioner Hester Peirce retires in November, leaving only Chairman Paul Atkins and Commissioner Mark Uyeda.
Since last December, the Commodity Futures Trading Commission has operated with Chairman Michael Selig as its sole member.
CFTC’s Lone Commissioner Faces House Scrutiny
The CFTC’s oversight of digital assets includes ETFs, perpetuals, prediction markets and other instruments. If enacted, the Clarity Act would expand the agency’s authority.
Earlier this year, Chairman Selig testified before the House Agriculture Committee, where members raised concerns about the deep vacancies.
Congresswoman Alma S. Adams, Ph.D. (NC‑12), had this to say following the Chair’s testimony:
“I am deeply concerned that Chairman Selig has indicated a willingness to advance major new regulations without a full complement of commissioners in place. Rulemaking of this magnitude requires the full deliberative process the agency was designed to carry out — not unilateral action by a single sitting commissioner.”
Efforts to install a bipartisan slate have been stalled as White House officials and Sen. Chuck Schumer, D‑N.Y., exchanged jabs and pointed blame.
Last month, Schumer sent two Democratic nominees for the SEC and CFTC, respectively, to the White House, but his office has not disclosed their names.
Given the partisan Senate standoff over the Clarity Act, having five sitting commissioners appointed from both sides of the aisle at the SEC and CFTC may help ease the tense negotiations.
Senate Minority Leader Chuck Schumer, a Democrat from New York, speaks to members of the media at the US Capitol in Washington, DC, US, on Monday, July 20, 2026. Senate efforts to pass a landmark cryptocurrency bill hit a snag last week as Democratic negotiators indicated they don’t yet support the latest GOP framework and some members balked at their narrowing window to act. Photographer: Graeme Sloan/Bloomberg
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Bipartisan Mandates Shape Both Agencies
Both agencies have a bipartisan mandate and headcount requirement.
CFTC is to consist of “five Commissioners appointed by the President, with the advice and consent of the Senate, to serve staggered five-year terms. The President, with the consent of the Senate, designates one of the Commissioners to serve as Chairman. No more than three Commissioners at any one time may be from the same political party.”
The SEC is to include “five Commissioners who are appointed by the President of the United States with the advice and consent of the Senate. Terms last five years and are staggered so that one Commissioner’s term ends on June 5 of each year. The Chairman and Commissioners may continue to serve up to approximately 18 months after terms expire if they are not replaced before then. To ensure that the Commission remains non-partisan, no more than three Commissioners may belong to the same political party. The President also designates one of the Commissioners as Chairman, the SEC’s top executive.”
Crypto Clarity Vote Faces An Uncertain Path
Executives from the crypto industry have expressed optimism that if the upcoming cloture vote fails, regulatory bodies can step in with much-needed rules. Still, some wonder if that’s actionable with such a severe leadership vacuum, particularly if the goal is a durable, comprehensive policy and regulatory framework to fuel growth in the United States.
Interestingly, the significance of the vacancies — along with the other outstanding issues — to the crypto legislative process may illustrate just how complex it will be for a bill to become law going forward. The fate of Clarity could serve as a timely best practice case or an insightful autopsy.
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