- Dan Gallagher may become the next SEC Chair if Trump wins, potentially driving a more balanced regulatory approach to crypto.
- Robinhood faces an SEC probe for crypto activities, and Gallagher is dismissing the lawsuit as weak due to Robinhood’s cautious strategy.
- Gallagher’s SEC candidacy could reform U.S. crypto regulations, but there are concerns over his ties to Robinhood.
The chief legal officer of Robinhood Dan Gallagher, may take over as head of the U.S. Securities and Exchange Commission in 2024 from Donald Trump. Thanks to his political insight and former SEC commissioner experience, Gallagher is quickly being seen as a dangerous opponent. Meanwhile, the SEC, under current Chair Gary Gensler, is considering a lawsuit against Robinhood, signaling potential conflict if Gallagher is chosen for the role.
SEC’s Investigation into Robinhood's Crypto Business
SEC is investigating Robinhood's cryptocurrency activities hence Gallagher is also being observed. For this purpose, a regulator is looking into whether Robinhood is using an unauthorized broker-dealer to operate in the Bitcoin market.
Although charges are not certain, a legal battle could soon emerge, placing Gallagher in an awkward position. Despite the investigation, Gallagher has dismissed the SEC’s potential lawsuit, calling it "a dog of a case" and arguing Robinhood’s conservative approach to crypto trading shields it from liability.
Gallagher's Stand on Crypto Regulation
Besides Gallagher, other candidates for the SEC chair position include former CFTC Chair Chris Giancarlo and current SEC Commissioner Hester Peirce. However, Gallagher appears to have the most significant momentum.
Republican legislators who have endorsed him and praised his experience and intellect include Rep. Bill Huizenga. Huizenga thinks Gallagher is the best option to strike a balance between regulation and excess.
Gallagher has also attacked the SEC's Gensler-era strategy, focusing on how it handled legislation pertaining to cryptocurrencies. He claims that by now, the SEC ought to have created more precise regulations for cryptocurrency exchanges and brokers. Gallagher believes that the industry needs tailored regulations to offer a clear path forward for crypto players.
Tensions Rise as Gallagher's Candidacy Grows
Consequently, if Gallagher becomes the SEC Chair, he will likely push for more definitive crypto policies. However, Democrats and regulators remain cautious of his ties to Robinhood, which has faced scrutiny, especially during the 2021 GameStop trading incident.
There are a lot of disagreements between the SEC and the cryptocurrency industry, which may be the reason behind Gallagher's possible transfer from Robinhood. This choice may change the nature of regulations, especially if the cryptocurrency sector grows.
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