Trump May Pick Robinhood Exec to Replace SEC Chair Gensler

Robinhood’s top lawyer, Dan Gallagher, is being considered to replace SEC Chairman Gary Gensler if Donald Trump wins the presidency, according to a report by Politico. Gallagher, Robinhood’s chief legal officer and a former SEC commissioner, is seen as a leading candidate for the role, backed by multiple former regulators, lobbyists, and securities lawyers.

Gallagher’s appointment could bring a major shift in the SEC’s stance, especially on cryptocurrency regulation. The agency is currently weighing a lawsuit against Robinhood over its crypto business. The SEC has been targeting transactions involving crypto tokens, which it considers securities, and is investigating whether Robinhood is operating as an unregistered broker-dealer.

Gallagher downplayed the severity of the case, arguing that Robinhood has taken a cautious approach compared to other platforms. He noted that the company offers only a limited number of crypto tokens and doesn’t engage in lending or staking. “We’ve been forgoing revenue by not listing a large number of coins,” Gallagher told Politico, calling it a “bad policy” to target compliant firms.

The SEC has not commented on the matter, but its crackdown under Gensler has intensified. Since his appointment by President Biden in 2021, Gensler has pushed for stricter oversight of the cryptocurrency industry, drawing bipartisan criticism. Some Republicans and Democrats want him replaced, and Trump has publicly vowed to remove Gensler if re-elected.

Other potential SEC chair candidates under the Trump administration include former CFTC Chair Chris Giancarlo, known as “CryptoDad,” SEC General Counsel Robert Stebbins, and current SEC Commissioner Hester Peirce. These names have surfaced as the GOP seeks a new direction for the agency.

Despite the SEC’s scrutiny, Gallagher is still viewed as the front-runner. “Dan would be great,” said Republican Rep. Bill Huizenga, who acknowledged their past differences but praised Gallagher’s experience and approach.

Gallagher has a history of criticizing the SEC’s regulatory approach. During a 2015 symposium, he argued that the U.S. still hasn’t fully understood what caused the 2008 financial crisis and blasted reforms that followed. He has also spoken out against the SEC’s internal courts, which have faced legal challenges over their constitutionality.

The debate over Gensler’s leadership is heating up, even outside the GOP. Major donors backing Vice President Kamala Harris have urged her to replace Gensler if she wins in 2024, citing concerns over his handling of the crypto industry. Trump, who has positioned himself as a pro-crypto candidate, doubled down on his criticism of Gensler during the 2024 Bitcoin Conference. He promised to fire Gensler if re-elected, calling for a more lenient approach to digital assets.

Gallagher’s track record and willingness to challenge the SEC’s current policies make him an appealing choice for Republicans seeking to overhaul the agency’s stance. He has indicated he would have established clearer industry guidelines if he had been chair over the past few years.

Despite the speculation, Gallagher says he is focused on his role at Robinhood and finds it “an honor” to be mentioned as a candidate. He reiterated his disagreement with Gensler on crypto regulation but emphasized his respect for the current chairman.

The outcome of the 2024 election could determine the future of the SEC’s leadership and its approach to regulating the crypto industry. For now, Gallagher remains a top pick for those looking to see a new direction at the agency.