Robinhood's CLO Dan Gallagher emerges a potential candidate to replace Gary Gensler as SEC Chair if Donald Trump wins the presidency. l Credit: Johnnie Izquierdo for The Washington Post via Getty Images
Key Takeaways
- Dan Gallagher is being considered to replace Gary Gensler as SEC Chair.
- Gallagher’s current employer, Robinhood, is under the SEC’s investigation.
- Gallagher is a big critic of the SEC’s current crypto regulation approach.
Dan Gallagher, Robinhood’s Chief Legal Officer, and a former SEC commissioner is reportedly in the running to succeed Gary Gensler as the head of the U.S. Securities and Exchange Commission (SEC) if Donald Trump wins the presidency again.
However, Gallagher’s potential ascension to the top regulatory post is fraught with irony, given the SEC’s ongoing case against Robinhood.
Gallagher to Replace Gensler?
Dan Gallagher’s resume checks all the right boxes for the top job at the SEC.
As a former SEC commissioner, he understands the regulatory landscape and has been critical of the agency’s approach to regulating the crypto industry.
During his tenure at the SEC, Gallagher focused on scrutinizing the regulatory landscape, particularly rules implemented after the 2008 financial crisis.
He also pushed for a review of U.S. stock market trading practices and voiced concerns over the SEC’s internal courts, some of which have been ruled unconstitutional by the Supreme Court.
His pro-crypto stance, on the other hand, is another factor.
Gallagher has garnered support from lawmakers, including Representative Bill Huizenga (R-Mich.), who commended his expertise after his House Financial Services hearing testimony.
Other potential candidates for the SEC chair include former CFTC chairman J. Christopher Giancarlo, known as “CryptoDad,” and current SEC commissioner Hester Peirce.
However, Gallagher’s unique combination of experience and crypto-friendly approach has made him a top contender for the role.
A Slight Hiccup?
It’s unclear whether Gallagher would be willing to leave his current role at Robinhood.
The Robinhood CLO told Politico that he loves his current role, “It’s an honor to have my name included in any discussion of who may be the next SEC chairman.”
Besides that, Gallagher’s employer is currently facing scrutiny from the very agency he might lead.
The SEC is investigating Robinhood over allegations that it has operated as an unregistered broker-dealer. This probe could pose a significant challenge for Gallagher, who has been critical of the agency’s approach to regulating crypto trading.
Unhappy With the SEC’s Approach
Gallagher has frequently made it clear that he disagrees with the SEC’s direction on crypto regulation.
In a recent testimony before the House Financial Services Committee, Gallagher lambasted the agency’s lack of clear guidelines for digital assets, saying it has created a “hostile environment for innovation.”
Gallagher remarked that if he had been chair in recent years, tailored rules would already be in place.
The Robinhood executive said that he would create “a path forward for at least a baseline registration system” for crypto exchanges and brokers. However, he also noted that legislative action would still be necessary.
Gallagher suggested that the agency should establish a provisional regulatory framework to provide clarity and certainty for firms operating in the crypto space.
He emphasized that the SEC’s current approach, which relies heavily on enforcement actions, stifles innovation and harms American consumers.
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