Dan Gallagher, Chief Legal Officer at Robinhood, could become the next Chair of the U.S. Securities and Exchange Commission (SEC) if former President Donald Trump secures a second term. According to Politico, Gallagher has emerged as a top contender for this pivotal role, especially as the SEC hints at potential charges against Robinhood's crypto unit.
Gallagher expressed his gratitude for being mentioned as a possible SEC Chairman in a statement to The Block. He stated, "It is an honor to have my name included in any discussion of who may be the next SEC Chairman. I’ve had the privilege to serve in various roles at the SEC, including as a commissioner. My hope for any new SEC Chairman would be that they foster access to the markets and ensure the U.S. remains at the forefront of financial innovation."
Gallagher served as a Republican SEC commissioner from 2011 to 2015 and has worked on issues related to the SEC's enforcement and trading divisions. Recently, he has voiced concerns regarding the agency's regulatory approach to digital assets.
As tensions escalate between the SEC and the crypto industry, questions arise about the feasibility of compliance with SEC regulations. The agency has consistently urged crypto exchanges to register, declaring that most cryptocurrencies are classified as securities. However, many crypto firms argue that the existing rules do not accommodate their unique operational frameworks.
The SEC has initiated legal actions against major crypto firms like Coinbase, Kraken, and Binance. During a recent congressional hearing, Gallagher revealed that Robinhood had engaged in discussions with the SEC regarding its crypto business for a year and a half, stating, "We heard Chair Gensler's call to come in and register loud and clear. Admittedly I scratched my head a bit because there was no established regime, at least published regime, but being seasoned securities lawyers, we thought we'll just roll up our sleeves."
If Trump wins the presidency, other potential candidates for the SEC Chair position include former Commodity Futures Trading Commission Chair Chris Giancarlo, former SEC General Counsel Robert Stebbins, and current Republican SEC Commissioner Hester Peirce, who plans to leave the agency in 2025.
The SEC declined to comment on this matter.
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