Trump is considering Robinhood’s Dan Gallagher as SEC Head Gary Gensler’s replacement: report

by

As a seasoned analyst with a keen eye for political intrigue and a deep understanding of financial markets, I find myself intrigued by the latest developments at the Securities and Exchange Commission (SEC). The rumors surrounding the potential replacement of Gary Gensler have sent ripples through the crypto industry, with many eagerly anticipating a more favorable regulatory environment under Dan Gallagher.

Reports suggest that Donald Trump’s advisors are contemplating Dan Gallagher, the current chief legal officer at Robinhood, as a potential successor to Gary Gensler as the chair of the Securities and Exchange Commission (SEC). Yet, there is a possibility that Gensler might continue in his position unless he decides to resign.

As per a Reuters article dated November 7th, it’s been suggested by several informed sources that Donald Trump’s transition team is contemplating the appointment of Dan Gallagher, a lawyer with a pro-cryptocurrency stance, as the new Chairman of the Securities and Exchange Commission. This would replace Gary Gensler in the position.

Previously, Gallagher held the position of Republican SEC commissioner from 2011 to 2015. At present, he serves as the chief legal and compliance officer at retail brokerage Robinhood. He is often favored by crypto executives due to his stance on classifying cryptocurrencies as a distinct asset class rather than considering them as securities.

In his presidential bid, Donald Trump pledged to dismiss Gensler on his inauguration day. Known for his critical views of the cryptocurrency industry, Gensler has often asserted that the field is dominated by speculators.

Additionally, the Securities and Exchange Commission (SEC) has taken legal action against multiple cryptocurrency firms and their leaders. Notable cases include those involving Coinbase, Binance, and Ripple, which are currently under investigation by the SEC.

Regarding speculation about the new leader of the agency, Trump’s spokesperson for national media, Karoline Leavitt, informed Reuters that Trump will announce his choice for his upcoming administration fairly quickly.

“Those decisions will be announced when they are made,” said Leavitt.

Prior to the upcoming presidential election, Gary Gensler expressed his intention to remain at the Securities and Exchange Commission (SEC) and carry on with his duties until he is signaled it’s time to leave, using the analogy of a referee blowing a whistle. His term at the SEC began in 2021 under the Biden administration and will end in 2026.

Historically, Securities and Exchange Commission (SEC) leaders have left their positions following a shift in the presidential administration. Given this pattern, it’s plausible that Gary Gensler may choose to step down when the Republican party assumes control of the White House.

It’s worth mentioning that U.S. Presidents do not have the ability to dismiss an executive agency commissioner arbitrarily. This regulation was established in the 1930s specifically to restrict President Franklin Roosevelt from reorganizing the Federal Trade Commission excessively.

Similarly, the situation is comparable for other leading officials at agencies, such as the Federal Reserve Chairman, Jerome Powell. On several instances throughout his initial term, President Trump hinted at dismissing Powell from his position.

Contrarily to earlier speculations, CNN stated that a senior advisor of Trump indicated that Powell might continue serving as the Fed chairman until the conclusion of Trump’s term in May 2026, a stance also echoed by Trump himself when he spoke with Bloomberg in July.

In response to being questioned about potential job loss during the transition to the Trump administration, Powell asserted briefly that he would not be let go. He maintained that Trump did not possess the legal authority to terminate him.

“Not permitted under law,” said Powell.

In the year 2018, Trump selected Powell to serve as the Chairman of the Federal Reserve. Before this appointment, he had already been a member of the central bank’s board of governors, and held a position in the private equity sector.

Read More

2024-11-08 12:40