An Former Republican Commissioner Tops the List
Donald Trump’s transition team is seriously considering Dan Gallagher, Chief Legal Officer of Robinhood Markets, to lead the Securities and Exchange Commission (SEC). According to a November 7th report by Reuters, Gallagher, who served as a Republican commissioner at the SEC from 2011 to 2015 under the Obama administration, is currently the favorite to replace current SEC chairman Gary Gensler.
Other names are also circulating in discussions, including Paul Atkins, another former Republican commissioner who participated in Trump’s transition team in 2016, as well as Robert Stebbins, a partner at Willkie Farr & Gallagher and former general counsel of the agency during Trump’s first term.
A Clear Commitment to the Crypto Industry
As soon as I am sworn in, the persecution will stop and the weaponization will cease against your industry. I will appoint a new SEC chairman who believes that America must build the future, not block it.
Trump, determined to restructure financial regulation from the moment he takes office, promised to remove Gary Gensler on his first day in power. This promise was primarily directed at the crypto community, which has viewed the strict measures imposed by the current SEC chairman unfavorably. The crypto industry, which heavily invested in influencing the election, may look favorably upon Gallagher’s arrival as a potential ally.
The Reaction of the Legal and Financial Community
Gallagher’s choice doesn’t completely surprise the financial world. Politico had already mentioned his name last month, citing a former SEC official who called him a ‘natural choice’ for Trump. However, the selection process remains uncertain and could take several weeks. According to some sources, it is still premature to guarantee that Gallagher will actually be chosen for the position.
Trump’s campaign has not responded to our questions at this time. Gensler, on the other hand, had already hinted that he would leave his position if Trump won the election, although his current term extends until 2026.
A High-Tension Term
Since his nomination by President Joe Biden in 2021, Gary Gensler has pursued a strict regulatory policy, resulting in numerous clashes with companies in the crypto sector. This approach has sparked criticism regarding the rigidity of the measures taken. For the crypto industry, a change of direction at the SEC, embodied by Gallagher, could pave the way for a more nuanced and potentially favorable approach.
Gallagher, currently at Robinhood, has already faced legal battles related to crypto. In May, the company announced that it had received a Wells notice from the SEC, a warning of possible legal action. If appointed, he could find himself navigating an even more polarized environment, heading an agency that Trump wants to overhaul to appease the relationship between regulators and decentralized finance actors.
January 20, 2025, will mark the beginning of a new era with the inauguration of Donald Trump as the 47th President of the United States, whose impact on regulations and the global financial ecosystem will be closely watched.
