Hester Peirce, a commissioner at the US Securities and Exchange Commission (SEC), will step down on October 2. Her departure leaves the agency with only two active commissioners, Chairman Paul Atkins and Commissioner Mark Uyeda. Both remaining members belong to the Republican party, which removes the traditional partisan balance intended for the five-member commission.
The combined vacancies at the SEC and the Commodity Futures Trading Commission (CFTC) will reach seven seats after Friday. This reduced capacity creates risks for the oversight of the $3 trillion crypto industry. With only two members, the SEC faces potential quorum issues if any recusal occurs, limiting its ability to conduct major rulemakings or enforcement actions.
Peirce, who was first appointed in 2018, served in a holdover capacity for approximately 16 months after her term expired on June 5, 2025. In early 2025, she led the SEC’s Crypto Task Force, which focused on providing staff guidance for tokens, staking, and decentralized finance. No successors have been nominated for her seat or other vacancies.
Following her departure, Peirce will join the Regent University School of Law as an associate professor in November 2026. The current leadership shortage at the regulatory agencies may delay progress on comprehensive digital asset legislation and market structure bills, as these require significant interagency coordination that is difficult to manage with a skeleton crew.
