A recent report has ignited speculation in the cryptocurrency and broader financial sectors about potential changes at the helm of the U.S. Securities and Exchange Commission (SEC). According to the report, Robinhood’s Chief Legal Officer Dan Gallagher could potentially replace current SEC Chair Gary Gensler if Donald Trump wins the 2024 U.S. Presidential Election. This development comes amid growing criticism of the SEC’s approach to crypto regulation under Gensler’s leadership.

Gallagher’s Potential Rise to SEC Chair

The possibility of Dan Gallagher taking over as SEC Chair has sparked discussions about a potential shift in the regulatory landscape for cryptocurrencies. Gallagher’s candidacy has gained traction, particularly among Republicans and crypto enthusiasts who have been critical of the SEC’s recent regulatory actions.

Gallagher’s background as a former SEC commissioner and his current role at Robinhood make him a strong contender for the position. His legal expertise and political experience further bolster his credentials for the top SEC role. A former senior SEC official quoted in the report described Gallagher as a “natural choice” for the position.

Gallagher has been vocal in his criticism of the SEC’s approach to crypto regulation under Gensler’s leadership. He argues that the agency’s current stance lacks clarity and that a more tailored regulatory framework for digital assets could foster innovation and growth in the sector.

Robinhood vs. SEC

The report cites Gallagher as saying, “If I were chair, a baseline registration system for crypto exchanges and brokers would already be in place.” This statement underscores his dissatisfaction with the agency’s handling of the $2 trillion crypto market.

The SEC recently issued a Wells Notice to Robinhood, alleging that the company may be operating as an unregistered broker-dealer in the crypto space. Gallagher has defended Robinhood’s practices, emphasizing the platform’s cautious approach to crypto listings and its avoidance of lending or staking products.

Gensler’s Future Uncertain

As speculation mounts about potential changes at the SEC, questions arise about Gary Gensler’s future in the role. Donald Trump has openly criticized Gensler and stated that he would fire him on his first day as President if elected.

The growing criticism of the SEC under Gensler’s leadership has sparked debates about whether he would retain his position after the election, regardless of the outcome. Some Democrats have even urged Vice President Kamala Harris to consider replacing Gensler if their party secures victory.

Other potential candidates for the SEC Chair position under a Trump presidency include former CFTC chairs J. Christopher Giancarlo, Heath Tarbert, and Paul Atkins.

As the crypto industry continues to evolve and face regulatory challenges, the potential leadership change at the SEC could have significant implications for the future of digital asset regulation in the United States.