Robinhood Chief Legal Officer Now Leading Candidate to Lead SEC If Trump Wins

Key Points:

• Dan Gallagher, Robinhood Chief Legal Officer, is a leading contender to become SEC Chair if Donald Trump wins the presidency.
• The SEC is considering legal action against Robinhood for potentially operating as an unregistered broker-dealer in crypto markets.

According to Politico, Dan Gallagher, Robinhood Chief Legal Officer, is emerging as a potential candidate to lead the Securities and Exchange Commission if Donald Trump makes another presidential run, according to several former top regulators, lobbyists and securities lawyers.

Read more: SEC Chair Gary Gensler Will Make Biden Lose the 2024 Presidential Race

Robinhood Chief Legal Officer Dan Gallagher Emerges as Potential SEC Chair Candidate Under Trump

The Robinhood Chief Legal Officer happens to be one of the previous commissioners at the SEC and is said to have great political acumen and affability, thereby making him an attractive candidate for the position.

Gallagher and Robinhood may find themselves at odds with that very agency, which he could be tapped to lead. The SEC is said to be weighing a lawsuit against Robinhood over the firm’s cryptocurrency business. The agency has been looking into whether Robinhood is acting as an unregistered broker-dealer and clearing agency in crypto markets. It’s not clear if charges are filed, but the possibility of a lawsuit certainly muddles Gallagher’s potential candidacy for chair.

Gallagher pushed back hard against the prospect of an SEC lawsuit as unwarranted. He noted that Robinhood trades only a tiny fraction of cryptocurrencies on the market and does not offer crypto lending or staking products. “We’ve deliberately avoided aggressive strategies like listing numerous coins, and that sets us apart,” Gallagher said. He also said that targeting companies like Robinhood is misguided.

With the prospect of Trump’s recapturing of the White House, the talk of a revolving door between industry and government has started afresh. Apart from Gallagher, the other likely contenders for the chairmanship of the SEC include former Commodity Futures Trading Commission Chair Chris Giancarlo, former SEC General Counsel Robert Stebbins, and current SEC Commissioner Hester Peirce.

Gallagher’s SEC Candidacy Could Come Under Fire Due to Industry Links

If chosen, the Robinhood Chief Legal Officer would likely face resistance from Democrats who are skeptical of industry officials running regulatory agencies. Putting aside those potential concerns, Gallagher cited Robinhood’s better compliance work and defended his unique experience in both the public and private sectors as one that “provides me with valuable insight.”

Going even further, Gallagher has expressed disapproval for the kind of regulations the SEC has been pushing forward to regulate cryptocurrency and has called for more tailored rules and legislative clarity for that industry.