In a developing story from Politico, a potential clash looms between the Wall Street regulator and Robinhood Crypto. As the Securities and Exchange Commission (SEC) prepares to scrutinize Robinhood’s cryptocurrency operations, Chief Legal Officer Dan Gallagher is emerging as a leading candidate to lead the SEC should Donald Trump seek another term as president secure.
Potential candidates for SEC chairman
As the political landscape shifts, with crypto at the forefront of the upcoming elections, Gallagher’s candidacy for the SEC chairmanship signals a potential return to the doors of government and industry, reminiscent of the early Trump administration.
In a scenario where former President Trump secures the seat in the Oval Office, there is certainly a greater chance of positive regulatory changes for the industry, which has been characterized by inappropriate actions and lawsuits, with Robinhood being one of the latest companies focused by the agency this year.
Other names named from Politico for the role include former Commodity Futures Trading Commission (CFTC) Chairman Chris Giancarlo, known as “CryptoDad,” and current SEC Commissioner Hester Peirce, who has been an outspoken proponent of innovation and a new regulatory framework for the crypto industry.
Robinhood CLO promises crypto reform
Gallagher has long been seen as a preferred choice among Republicans. Rep. Bill Huizenga (R-Mich.) praised Gallagher’s qualifications and noted the importance of thoughtful leadership that is not driven solely by ideology. Still, the Politico report notes that Robinhood’s CLO could face a controversial confirmation process.
Democrats have previously expressed skepticism about industry insiders leading federal regulators, especially given Robinhood’s “controversial history,” including its actions during the GameStop trading frenzy in 2021. However, Gallagher insists that the company has since improved its compliance and has improved risk management protocols.
Gallagher’s vision for the SEC reportedly includes a more tailored approach to cryptocurrency regulation, advocating a basic registration regime for crypto exchanges and brokers. He believes that if he had been in charge in recent years, the SEC would have already established clearer, more supportive regulations for the industry.
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