Dan Gallagher Poised to Succeed Gary Gensler as SEC Chair, Signaling Possible Shift for Crypto Regulation

The U.S. Securities and Exchange Commission (SEC) may witness leadership changes soon as Robinhood’s Chief Legal Officer, Dan Gallagher, emerges as a top contender to replace current SEC Chair Gary Gensler. 

JUST IN: ROBINHOOD $HOOD LEGAL CHIEF DAN GALLAGHER IS STILL FRONT RUNNER TO REPLACE GARY GENSLER : REUTERS pic.twitter.com/cfHtftiCpw

— Crypto Macro (@cryptomacro14) November 7, 2024

With reports indicating that Gensler is expected to resign by the end of the year, the prospect of Gallagher stepping into the role aligns with a growing call for regulatory reforms in the cryptocurrency space. 

Gallagher, known for his pro-innovation stance, could bring about a shift in SEC policies that may benefit the crypto industry, especially in light of the incoming Trump administration in 2025.

Gallagher’s Potential Appointment and Impact on Crypto Policy

Dan Gallagher, a former SEC commissioner (2011–2015) and current CLO at Robinhood, has emerged as a leading candidate to replace Gensler under the Trump administration. 

Gallagher’s previous SEC tenure and alignment with a more flexible, pro-innovation regulatory framework resonate with many crypto advocates and industry leaders. Sources close to the matter have reported to Reuters that Gallagher’s name has gained traction within Trump’s advisory circles, making his candidacy increasingly likely.

Gallagher has a history of advocating for lighter regulatory oversight in the financial sector, which could translate to a more accommodating stance towards cryptocurrencies. 

Unlike Gensler, who has viewed digital assets primarily as securities subject to stringent oversight, Gallagher has argued for treating digital assets as a unique asset class, distinct from traditional securities. 

If appointed, Gallagher’s perspective could lead to changes in the SEC’s approach toward high-profile cases, such as the SEC vs Ripple lawsuit, and potentially ease the pathway for crypto products, like spot ETFs, to gain regulatory approval.

Other Candidates in Consideration

Although Gallagher is viewed as the front-runner, other figures are reportedly under consideration for the role. SEC Commissioner Hester Peirce, popularly known as “Crypto Mom” for her pro-crypto stance, has been named as a desired choice among crypto advocates. 

Another candidate in the mix is current Republican SEC Commissioner Mark Uyeda, known for supporting innovation within the financial sector.

Additionally, Paul Atkins, CEO of Patomak Global Partners and a former SEC commissioner, has been mentioned as a potential candidate. Atkins has a history with the Trump administration, having served on the 2016 transition team and previously being considered for the SEC chair position. 

Also in discussion is Robert Stebbins, former SEC general counsel, whose legal background places him as a viable option.

Timeline and Expected Developments

While Gensler’s term technically extends until 2026, mounting calls for his resignation from within the industry have raised expectations of an early departure, with sources indicating he may step down by the end of 2023. 

Karoline Leavitt, Trump’s national press secretary, commented that final decisions on key appointments will be made and announced when finalized, suggesting that the official nomination process for the next SEC Chair may begin early next year.