Donald Trump, who has threatened to fire Securities and Exchange Commission (SEC) Chair Gary Gensler if he wins the presidential election, is reportedly considering Dan Gallagher, Chief Legal Officer at Robinhood HOOD, to fill the position.
What Happened: According to Politico, Gallagher — a former SEC commissioner known for his political acumen — is being eyed as Gensler’s potential successor.
It would be an awkward promotion, considering the SEC threatened to sue Robinhood for allegedly operating an unregistered broker-dealer and clearing agency in the crypto markets.
Gallagher pushed back against this potential lawsuit, calling it “a dog of a case.”
“We’ve been forgoing revenue for the company by not going hog wild listing coins, and I think that puts us in a very, very unique position,” Gallagher stated. He added, “Shooting at the good guys is a really bad policy.”
If appointed, Gallagher could face a contentious confirmation process due to concerns about the revolving door between industry and government. Some Republicans, including Rep. Bill Huizenga (R-Mich.), have expressed support for Gallagher, praising his thoughtfulness and experience.
Gallagher has been critical of the SEC’s approach to cryptocurrency regulation under Gensler’s leadership. He believes that if he had been chair, there would already be tailored rules for the crypto industry, providing “a path forward for at least a baseline registration system” for crypto exchanges and brokers.
Why It Matters: The speculation surrounding Gallagher’s candidacy underscores the revolving door between government and industry, particularly if Trump secures another term.
Other potential candidates for the SEC chair include Chris Giancarlo, Robert Stebbins and Hester Peirce.
Recently, Mark Cuban criticized Gensler for creating complex regulations that hinder the growth of the crypto sector. Cuban argued that the regulatory framework is too challenging for smaller companies to navigate.
Robinhood has been expanding its crypto operations, as evidenced by its recent launch of crypto transfers in Europe. This feature allows users to deposit and withdraw over 20 different cryptocurrencies, including Bitcoin BTC/USD, Ethereum ETH/USD and Solana SOL/USD.
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