Hester Peirce’s resignation took effect on Oct. 2, leaving Paul Atkins and Mark Uyeda as the only sitting members of the U.S. Securities and Exchange Commission. A rule change published on Sept. 30, effective the same day, now allows a single commissioner to form a quorum when every other commissioner is disqualified from a specific matter. Under the current roster, that means either Atkins or Uyeda could act alone as the Commission’s decision‑making body for issues on which the remaining member is not disqualified. The amendment modifies 17 C.F.R. § 200.41, the provision that defines the minimum number of eligible commissioners required to conduct Commission business. The change extends an existing exception that previously covered situations with fewer than three sitting members; it now also covers cases where two members are present but one is disqualified from a particular issue. The SEC described the adjustment as an internal management measure that promotes flexibility and finality, stating that it does not create new substantive regulatory authority.

Peirce’s departure was announced in a Sept. 21 letter stating her exit would be effective Oct. 2. The SEC’s updated roster, released Oct. 3, lists Chairman Atkins and Commissioner Uyeda. The agency’s historical service table also records Peirce’s tenure ending on Oct. 2.

The agency continues to advance several crypto‑related initiatives. A proposed custody rule, circulated among the three commissioners on Oct. 1 and later approved for public comment, would set standards for how registered investment companies and advisers may hold crypto assets. The rule remains in the proposed stage, with a comment deadline set for Dec. 7. Another proposal, Regulation Crypto Assets, was issued Aug. 18 and published Aug. 21; it would create exemptions for certain crypto‑related investment contracts while preserving antifraud and antimalpractice provisions.

A separate conditional exemptive order, dated Sept. 17, provides temporary relief for tokenized securities traded on national securities exchanges and certain liquidity providers. The order, which runs for five years, imposes limits on symbols, volume, and disclosure requirements, and it requires issuer notice and an opportunity to object when a third‑party tokenizes stock.

The new quorum provision does not replace voting or legal authority. Under the SEC’s seriatim rule, a matter is not final until each commissioner reports a vote or intended nonparticipation to the secretary. Commissioners may also request that a circulated matter be withdrawn for joint deliberation. The amendment merely clarifies that a single eligible commissioner can act when all others are disqualified from a given issue; it does not broaden the scope of any exemption or remove existing safeguards.

Legal scholars note that the change could affect how quickly the Commission can act on crypto‑related matters, especially as the agency navigates a reduced roster. However, any decision made under the new quorum rule remains subject to the Administrative Procedure Act’s notice‑and‑comment requirements and to judicial review if found to exceed statutory authority.

The next concrete milestones for crypto firms are the Dec. 7 comment deadline for the custody proposal, the ongoing review of the tokenized‑stock exemptive order, and any future Commission votes that will be recorded under the revised quorum framework. The agency has indicated that it will continue to post vote tallies only when a matter reaches a final stage, so the current record reflects only the Oct. 1 approval of the custody rule by all three commissioners before Peirce’s departure.