Hester Peirce Exits the SEC as Staff Guidance Fills the Gap Left by the CLARITY Act

The U.S. Securities and Exchange Commission is about to look very different. Commissioner Hester Peirce, the agency’s most prominent voice on digital assets for the better part of a decade, has resigned effective October 2, 2026. Her exit comes barely two weeks after the CLARITY Act failed in the Senate, and in the same stretch the SEC’s staff published new guidance on how securities law applies to crypto. Taken together, the developments show U.S. crypto policy shifting decisively from Congress to the agencies, and those agencies are running with fewer people at the top than at any point in recent memory.

Peirce Leaves After Eight Years

Peirce, often nicknamed “Crypto Mom” for her long-running advocacy for clearer digital-asset rules, announced her resignation late last week, according to Cointelegraph. She spent eight years at the commission and, per the same report, is set to join Regent University in Virginia as an associate professor in November.

Her departure leaves the SEC with just two sitting commissioners, Chair Paul Atkins and Commissioner Mark Uyeda, both Republicans. The two Democratic seats are vacant and no replacements have been announced. Cointelegraph also noted that the SEC and CFTC combined will soon be led by only three commissioners, a remarkably thin bench for two agencies now carrying most of the weight of crypto rulemaking.

Staff Guidance Arrives as Legislation Stalls

On September 28, SEC staff updated the agency’s frequently asked questions on how federal securities laws apply to crypto assets and related transactions. According to Cointelegraph’s summary, the updated FAQs address several points the industry has long wanted clarified:

• Token buybacks: issuer buyback programs may not amount to investment contracts when the underlying crypto system is functional and has no central party.
• Network services: functional blockchain networks that provide security, maintenance or network enhancement services may not meet the criteria of the Howey test.
• Staking receipts: tokens representing staked assets would not necessarily be treated as securities.

The SEC was explicit that the guidance has no legal force, does not change existing law and creates no new obligations. In practical terms, it tells market participants how staff currently read the rules, not what a court or a future commission must conclude. The CFTC issued comparable guidance to token issuers the week before.

This is separate from the SEC’s formal Regulation Crypto Assets proposal, which is still out for public comment. As we explained in our breakdown of the SEC’s Regulation Crypto Assets proposal, that comment window closes October 20.

Why CLARITY’s Failure Matters Here

The CLARITY Act, the market-structure bill meant to divide oversight of digital assets between the SEC and CFTC, failed a cloture vote on September 15 by a tally of 49 to 50, according to crypto.news. It needed 60 votes to advance. Four Republicans, Susan Collins, Josh Hawley, Jerry Moran and Thom Tillis, voted against it, and Senator Chris Coons was absent.

The bill isn’t formally dead. The current Senate could try again or negotiate revised text, or the issue could slide to the next Congress. But with the midterms approaching, the fight is moving to the campaign trail. Crypto.news reported that the advocacy group Stand With Crypto endorsed three Senate candidates on September 30, and observed that even if all three win, the math still falls well short of 60 votes.

That gap is why agency action has taken center stage. The CFTC has already moved its own rules forward, as we reported when the CFTC sent crypto rules to the White House after the bill stalled.

The Trade-Off: Speed Versus Durability

Regulation by guidance and rulemaking can move faster than legislation, and some industry figures, including Bitwise’s CIO according to recent coverage, have argued the agency route may deliver quicker wins. The downside is durability. Staff FAQs can be revised or withdrawn, and formal rules can be rewritten by a future commission. As crypto.news put it, agency policy can change with leadership.

That risk is sharper with a two-member SEC. A commission with no minority members can act without dissent today, but any rules it adopts may face more political pressure to be revisited once new commissioners are seated. For crypto companies planning multi-year products, statutory clarity from Congress remains the more durable foundation, even if it’s currently out of reach.

What to Watch Next

• October 2: Peirce’s resignation takes effect.
• October 20: The comment period on the SEC’s Regulation Crypto Assets proposal closes.
• Nominations: Any White House picks for the vacant SEC seats would shape how long today’s approach lasts.
• CLARITY revival: Watch for revised Senate text or a decision to wait for the next Congress.

For now, the practical takeaway for investors and builders is that U.S. crypto rules are being written in agency guidance and proposals rather than statute. That can bring helpful clarity, but it’s clarity that could change with the people in charge.

This article is for informational purposes only and does not constitute financial advice.