Dan Gallagher, the Chief Legal Officer at Robinhood, is gaining attention as a potential contender for the role of Securities and Exchange Commission (SEC) Chair if Donald Trump regains the presidency. Gallagher, a former SEC commissioner, is praised for his expertise and political acumen by many in Washington.
However, his path to potential leadership could be complicated by an ongoing dispute with the SEC over Robinhood’s involvement in cryptocurrency trading, according to Politico.
The SEC, under current chair Gary Gensler, has intensified scrutiny on the cryptocurrency sector, considering charges against Robinhood for possibly operating as an unregistered broker-dealer in the crypto space. Gallagher, who disagrees with the SEC’s stance, argues that Robinhood has been conservative in its crypto listings and does not offer lending or staking products that other platforms engage in. He has called the case “a dog,” suggesting it targets a company that has deliberately avoided riskier areas of the crypto market.
This legal clash could place Gallagher in an awkward position as he is being considered for SEC leadership. His rise in Republican circles has been long anticipated, with some lawmakers advocating for his potential chairmanship as a sensible and experienced choice. Gallagher’s prior tenure at the SEC saw him challenge post-crisis regulations and question the agency’s internal court system, positions that align him with more industry-friendly regulatory perspectives.
Gallagher’s name is among other prominent candidates for the SEC role, including Chris Giancarlo, also known as “CryptoDad,” and Hester Peirce, a current SEC commissioner.
Despite the potential for a political battle if nominated, Gallagher maintains that his experience in both government and the private sector makes him well-suited for the role. He believes the SEC should have already developed clearer regulations for cryptocurrency, advocating for a balanced approach to registering exchanges and brokers.
While it remains uncertain if Gallagher will ascend to the SEC chairmanship, he continues to express his commitment to Robinhood and his appreciation for being considered for the role. His approach to crypto regulation may signal a significant shift in the SEC’s treatment of digital assets if he ultimately takes the helm.
