Trump Administration Considers Robinhood CLO Dan Gallagher for SEC Chair

Highlights:

• Trump’s transition team is considering Dan Gallagher for SEC Chair, sources say.
• Gallagher’s pro-crypto stance and SEC experience position him as a strong contender.
• Trump vows to replace SEC Chair Gensler on day one, promoting crypto-friendly policies.

President-Elect Donald Trump’s transition team is considering listing Dan Gallagher, Robinhood’s current Chief Legal Officer and former SEC commissioner, as a candidate for Chairman of the U.S. Securities and Exchange Commission (SEC), Reuters reported Nov. 7, citing sources familiar with the discussions. The transition is expected soon after Trump takes office in January 2025, as the crypto community’s demand to fire Gensler grows.

According to Reuters, the Trump transition team is considering nominating Robinhood Chief Legal Officer Dan Gallagher as chairman of the U.S. SEC. Gallagher is known for supporting financial innovation and market liberalization, and is particularly lax on cryptocurrency…

— Wu Blockchain (@WuBlockchain) November 8, 2024

Before joining Robinhood, Gallagher served as a Republican SEC commissioner from 2011 to 2015. He is also a prominent candidate among crypto executives, who donated millions to Donald Trump’s political campaign this year. He has openly criticized the SEC’s approach to regulating the crypto space, particularly under Gensler’s leadership.

Gallagher has consistently argued that digital assets should be treated as a separate asset class, not as securities. This may signal a shift towards crypto-friendly policies, ending the SEC vs. Ripple lawsuit, and opening the door for a spot XRP ETF.

Gallagher’s credentials make him a top contender, but his role as Robinhood’s legal head presents challenges. The SEC is investigating Robinhood for allegedly operating as an unregistered broker-dealer, which could complicate Gallagher’s transition to SEC chair. However, his pro-crypto background and regulatory knowledge give him a clear edge.

SEC chairs, appointed by the president, typically step down when a new administration takes office. President Joe Biden appointed Gensler in 2021. SEC had previously stated he would resign if Trump won, despite his term running until 2026.

Trump Vows to Fire SEC Chair Gensler “On Day One” If Reelected

At the Bitcoin 2024 conference in Nashville on July 27, Trump made specific promises about Bitcoin and the wider crypto industry. Trump stated that he would replace Gary Gensler if elected. He criticized the SEC for targeting Bitcoin, stressing its role in financial freedom. Trump vowed to end the “anti-crypto crusade” and stop attacks on crypto assets. 

Trump said at the Bitcoin Conference that if elected in November, he would fire Gary Gensler, prevent the U.S. from selling its Bitcoin holdings, and build a strategic Bitcoin reserve. Trump also praised the development of stablecoins and support for the Bitcoin mining industry…

— Wu Blockchain (@WuBlockchain) July 27, 2024

He expressed his intention to appoint an SEC Chairman who supports innovation and America’s future in digital assets. Trump said, “I’d appoint a new SEC Chairman who believes in building America and not blocking the future.”

Previously, he stated:

“On day one, I will fire Gary Gensler and appoint a new SEC chairman. I didn’t know he was that unpopular.”

Other Potential Candidates for the SEC Chair Position

The crypto community favors Hester Pierce, known as “crypto mom,” for the next SEC Chair, but sources told Reuters she has declined the role. Another possible candidate supporting crypto is Republican SEC Commissioner Mark Uyeda. 

Paul Atkins, a former Republican SEC commissioner and CEO of Patomak Global Partners, is also vying for SEC Chair. He was part of Trump’s 2016 transition team and was previously considered for the role. Robert Stebbins, a partner at Willkie Farr & Gallagher, is also being considered for the SEC shortlist. He previously served as SEC general counsel during Trump’s first administration.

Trump’s transition team is preparing a list of potential candidates for key financial agency positions to present to him for final approval. The process may take a few weeks, and it’s too early to know who will be appointed to the top positions, the sources said.

Trump’s national press secretary, Karoline Leavitt, said:

 “President-Elect Trump will begin making decisions on who will serve in his second Administration soon. Those decisions will be announced when they are made.”