Emily Walker
As President-Elect Donald Trump gets ready to take office, the cryptocurrency sector is closely monitoring his potential choices for crucial financial regulatory roles. Anticipating an end to the “war on crypto” that began under the Biden administration, Trump is poised to change leadership at the SEC and other financial institutions significantly.
Is Dan Gallagher the Future SEC Chair Who Will Foster Crypto Relations?
Reports from Reuters suggest that Trump’s transition team may nominate Dan Gallagher, a previous Republican SEC commissioner from 2011 to 2015 and currently Chief Legal and Compliance Officer at Robinhood Markets Inc., for the SEC chair position. Gallagher is favored by several crypto leaders who notably supported Trump’s campaign financially.
Another name in consideration is Paul Atkins, former SEC commissioner and CEO of Patomak Global Partners. Atkins played a role in Trump’s transition team in 2016 and previously sought the SEC chair position. Additionally, Robert Stebbins, a partner at Willkie Farr & Gallagher and former SEC general counsel during Trump’s initial term, is also being discussed for significant financial regulatory positions.
“President-Elect Trump will make decisions regarding his second Administration’s personnel soon. Announcements will follow,” stated Karoline Leavitt, Trump’s national press secretary, to Reuters.
At the same time, current SEC commissioner Mark Uyeda has publicly declared his support for efforts to diminish regulatory pressures on cryptocurrency. Uyeda, who has been on the commission since 2022, is expected to step in as acting chair when Trump takes office in January, according to a report from FOX Business report.
Uyeda asserted, “The Commission’s aggressive stance on crypto must cease, especially enforcement actions spurred just by registration failures without evidence of fraud or harm. President Trump and the electorate have made their stance clear. Starting in 2025, the SEC must execute this mandate,” he told FOX Business.
His position echoes Trump’s campaign commitment to stop the rigorous enforcement initiated by current SEC Chair Gary Gensler. Under Gensler’s leadership, the SEC has undertaken more than a hundred enforcement actions against various firms over the past three years, addressing both fraudulent practices and unregistered securities trading.
Some of these enforcement actions have centered around blatant fraud and money laundering, exemplified by charges against Sam Bankman-Fried of the defunct FTX exchange. However, other actions have focused on well-established entities like Coinbase, Ripple, Kraken, ConsenSys, and Cumberland DRW, accused of selling unregistered securities.
Gensler believes that all tokens, except Bitcoin, should be classified as securities subject to SEC oversight—a viewpoint that has encountered substantial pushback from the industry, legal experts, and lawmakers. Gensler, whose tenure lasts until 2026, has suggested he will resign with the new administration.
Hester Peirce, another Republican SEC Commissioner known for her pro-crypto stance and often referred to as “Crypto Mom”, was initially viewed as a strong candidate for SEC chair. However, sources indicate she does not wish to pursue that role. Instead, Peirce is reportedly interested in heading an internal “crypto task force” aimed at reassessing the SEC’s strategy towards digital assets and encouraging conversations with industry representatives.
Peirce has advocated for “safe harbor” provisions, enabling crypto companies to function under regulatory guidance without facing immediate enforcement risks. A representative for Peirce declined to elaborate on her future plans.
Uyeda has also been critical of the SEC’s handling of cryptocurrency regulation, describing it as a “disaster for the entire industry” during a FOX Business segment. “We have been imposing policy through enforcement without providing any guidance,” he remarked.
As of now, the total market capitalization of cryptocurrency is approximately $2.512 trillion.