With the SEC set to go down to just two Commissioners this year, Meredith recently revisited the quorum rule that governs action by the SEC Commissioners that we have referred to time and time again when the number of sitting Commissioners shrinks. I encountered the smallest Commission during my time in the practice during my first go-round at the SEC, when Chairman Levitt and Commissioner Wallman served as a two-member Commission. Broc Romanek recounted those days in his Cooley blog from last month, where he talks about the “Rule of 2” that allows for a quorum of two Commissioners during personnel shortages, vacancies or recusals.

I was therefore surprised to see in yesterday’s Daily Update from Securities Docket that the CFTC is getting along just fine with only one Commissioner, initiating eight rulemakings in the month of June with a very short-staffed Commission! The Bloomberg Law story referenced in the Daily Update notes:

The US regulator in charge of derivatives trading is rapidly proposing rules to establish its authority over prediction markets and digital assets, charging ahead with formal policies on big-ticket issues even as four out of its five commissioner seats remain vacant.

The Commodity Futures Trading Commission has initiated rulemaking on eight items since June, roughly doubling its output from the rest of President Donald Trump’s second term, according to a list of published proposals.

That includes one last month to crack down on war-related bets, as the agency challenges states over who regulates prediction markets that allow users to bet on reality TV results, the midterm elections, and more.

Part of the CFTC’s rulemaking push includes increased harmonization with the Securities and Exchange Commission, which listed dozens of proposals in its semiannual regulatory agenda this month following a slow start to the second Trump administration.

Although both Wall Street regulators typically flex their rulemaking powers across administrations, the CFTC is doing so at a rapid pace that’s likely accelerated by its unusual single-member leadership, with Chairman Michael Selig serving alone at the top, agency veterans said.

“The speed in which the rules are coming out, and just the pace of it, is something I don’t think we’ve ever seen before,” said Elizabeth Lan Davis, a Davis Wright Tremaine LLP partner and former CFTC attorney.

“Every week there’s now two or three more rules proposed or a request for comment,” she said.

You have got to hand it to Chairman Selig for pulling off some one-man-band level of activity to keep such a robust rulemaking agenda on track!

– Dave Lynn