The crypto exec within the operating to switch SEC’s Gensler underneath Trump: report

A prime Robinhood govt has emerged because the main contender to entrance the Securities and Trade Fee if Donald Trump wins the presidency and ousts SEC Chair Gary Gensler, in response to a report.

Dan Gallagher – Robinhood’s chief authorized officer and a former SEC commissioner – is believed to be the Republican nominee’s prime decide, according to a dozen former top regulators, lobbyists and securities lawyers interviewed by Politico.

“He’d be a pure alternative,” a former SEC official informed the publication.

In the meantime, the SEC is weighing whether or not to pursue a lawsuit towards Robinhood and its cryptocurrency enterprise. 

The regulatory company has been cracking down on the sector – particularly transactions involving crypto tokens, which the SEC considers securities. 

The SEC is wanting into whether or not the day-trading platform is working an unregistered broker-dealer and clearing company within the crypto markets.

“It’s a canine of a case,” Gallagher informed Politico. 

Robinhood presents buying and selling in only a fraction of crypto tokens in comparison with different platforms with a whole lot of tokens, Gallagher mentioned. The California-based fintech firm doesn’t have any crypto lending or staking merchandise, he mentioned.

“We’ve been forgoing income for the corporate by not going hog wild itemizing cash, and I believe that places us in a really, very distinctive place,” Gallagher informed the outlet. “Capturing on the good guys is a very unhealthy coverage.”

The SEC didn’t instantly reply to requests for remark.

Whether or not the company decides to pursue the swimsuit or not, it’s clear that Republicans and Democrats alike need to oust Gensler. 

Different names floating round as potential Trump picks for the place embrace former Commodity Futures Buying and selling Fee Chair Chris Giancarlo, often known as “CryptoDad”; former SEC Normal Counsel Robert Stebbins, now a associate at Willkie Farr & Gallagher;  and present SEC Commissioner Hester Peirce, who occupies a Republican seat on the fee, in response to Politico.

Although the SEC’s assault on Robinhood might stick Gallagher in scorching water, he stays the entrance runner for Gensler’s alternative.

“Dan could be nice,” Republican Rep. Invoice Huizenga of Michigan informed Politico final month. “I’ve had an incredible relationship working with him, even after we disagreed on some stuff.”

“Finally, you need somebody who’s considerate, skilled, and never simply ideologically politically pushed,” Huizenga mentioned. “That’s been, I believe, the issue with Gensler.”

President Joe Biden nominated Gensler to function the company’s chair in 2021.

Since then, Gensler – whose time period expires in 2026 – has been outspokenly pushing for elevated scrutiny on the cryptocurrency business.

Deep-pocketed donors backing Vice President Kamala Harris have referred to as for her to ax Gensler if she wins in November, in response to a Bloomberg report final month.

Former president Donald Trump – who staked his declare because the pro-crypto candidate in the course of the 2024 Bitcoin Convention in July – then mentioned he would hearth the chairman if he was re-elected to the presidency.

As a commissioner, Gallagher slammed the reforms signed into regulation within the wake of the 2008 Nice Recession. 

Throughout a symposium at Fordham Law School in 2015, Gallagher mentioned not solely was America unprepared for one more monetary disaster, however it had not “discovered what brought about the final one.”

He was fast to criticize the SEC’s in-house courts, which have since been declared unconstitutional in some Supreme Courtroom instances.

And he has expressed disapproval with the SEC’s present dealing with of the crypto business, arguing there would already be clear business tips in place if he had been chair the previous couple of years.

“I’d have completed issues otherwise,” Gallagher informed Pollitico. “I’ve identified Gary for a very long time and have plenty of respect for Gary, however, on this one, I disagree with him.”

Gallagher informed MM that he loves his job at Robinhood and that it’s “an honor to have my title included in any dialogue of who stands out as the subsequent SEC chairman.”