After US lawmakers failed to pass a comprehensive digital asset market structure bill, financial regulators stepped up efforts to change rules around the oversight and enforcement of crypto companies and offerings.

However, the two primary regulators, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), are understaffed at the leadership level, leaving the decisions for regulating aspects of the $3 trillion crypto market largely in the hands of just three individuals, two of whom were nominated by US President Donald Trump.

At the SEC, two commissioners — Chair Paul Atkins and former Acting Chair Mark Uyeda — remain following the departure of Commissioner Hester Peirce earlier this month. The…