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Dan Gallagher, the Chief Legal Officer at Robinhood, is being considered as a potential candidate for the role of SEC Chair under a Trump administration, according to a recent report from Reuters.
Trump’s transition team, a group of advisors and associates that assists Trump in preparing for his upcoming presidency following his election victory, has reportedly discussed adding Gallagher to a shortlist of candidates for the SEC leadership role.
Crypto Rising
Robinhood’s legal boss is also said to be a frontrunner to replace Gensler due to his background as a former SEC commissioner under President Barack Obama’s administration and his favorable reputation among cryptocurrency executives who supported Trump’s campaign.
As reported, the decision is still in progress and the team is still considering other candidates, such as Paul Atkins, another former commissioner, and Robert Stebbins, a lawyer who held a key position at the SEC. It might take some time to reach the final decision.
The report comes amid increasing discussions about the next SEC Chair under Trump’s administration. Trump had previously promised to dismiss Gensler on his first day in office as part of his campaign strategy to appeal to the cryptocurrency community. Now it has become a reality, many expect the president-elect will keep his words.
Under Gensler’s leadership, the SEC has faced waves of criticism from the crypto community due to its enforcement-over-guidance approach to crypto regulations.
Robinhood’s digital asset subsidiary is also under the SEC’s probe. Earlier in May, the entity revealed it had received a Wells Notice from the SEC. The regulator indicated that Robinhood may have violated securities laws related to its cryptocurrency business.
Though the Wells Notice threatens enforcement against Robinhood, there have been no actual acts by the regulator so far.
Apart from Robinhood, numerous crypto firms are also dealing with legal pressures from the securities agency. The list includes Uniswap Labs, Consensys, OpenSea, and Immutable, among others. Companies like Binance, Coinbase, and Ripple Labs are in legal battles with the SEC.
Calls for Gary Gensler’s Resignation Intensify
Calls for SEC Chairman Gary Gensler’s resignation have intensified since Donald Trump was elected the next US president. Gensler has been known as a controversial figure whose tenure has been marked by a belief that most cryptocurrency transactions violate federal securities laws.
Trump would have the authority to appoint a new chair immediately after taking office, but to do so, he must come up with legitimate reasons, which many believe may not be as smooth as expected.
However, typically, SEC Chairs step down upon new administration. If Gensler resigns before Trump’s inauguration, an interim chair would be appointed by President Biden from among the remaining Democratic commissioners.
The cryptocurrency community has thrown support for numerous figures, who they believe will foster a more favorable regulatory environment for digital assets, promote innovation, and provide clearer guidelines.
In addition to Robinhood’s Gallagher, crypto members favor former SEC commissioner Paul Atkins and current commissioners, Mark Uyeda and Hester Peirce, all of whom have expressed more favorable views towards cryptocurrencies compared to Gensler.
Uyeda has criticized Gensler’s approach to cryptocurrency regulation. In a recent appearance on Fox Business, he described the SEC’s crypto policies as a “disaster for the whole industry.”
Crypto attorney Jake Chervinsky said that Uyeda is a strong contender for the position. However, he suggested that Trump might prefer to appoint someone new rather than selecting from the current commissioners.
Coinbase CEO Brian Armstrong has voiced support for Commissioner Hester Peirce as a candidate for the SEC chair. He thinks she would be the best choice because she is smart, fair, professional, and capable of working with both sides.
Peirce, also nicknamed ‘SEC’s Crypto Mom,’ has repeatedly opposed the SEC’s approach to the industry through litigation. However, she is reportedly likely to leave the SEC as soon as her term ends.
The anticipated shift in the SEC leadership is expected to lead to a less stringent regulatory environment for cryptocurrencies. Trump has indicated a desire to make the U.S. the “world capital of crypto.”
English (US) ·