SEC adopts revised quorum rule allowing single commissioner action

The U.S. Securities and Exchange Commission has finalized a revised quorum rule, effective October 2, 2026, which introduces a narrow exception allowing a single commissioner to constitute a quorum for specific matters. While the standard requirement for official Commission action remains three members, the amendment expands existing disqualification pathways.

Under the new rule, if all other sitting commissioners are disqualified from a particular matter due to conflicts of interest or ethics rules, a single eligible commissioner may act on its behalf. This change follows previous guidance from 1995 that allowed for a two-member quorum under similar circumstances.

The rule change coincides with a period of reduced agency capacity, as Commissioner Hester Peirce began a leave of absence on the same day the rule took effect. With only two active commissioners currently in office, the amendment aims to prevent operational paralysis. However, the shift has drawn criticism regarding the potential for concentrated decision-making, particularly as the agency manages various pending cryptocurrency-related proposals.