Bitrabo Editorial
A developing situation from Politico indicates a brewing conflict between the Wall Street regulator and Robinhood Crypto. The Securities and Exchange Commission (SEC) is set to examine Robinhood’s cryptocurrency activities, with Dan Gallagher, the company’s chief legal officer, emerging as a prominent candidate for the SEC chair if Donald Trump regains the presidency.
Possible Candidates for SEC Leadership
With the political environment evolving and cryptocurrency gaining attention in the upcoming election, Gallagher’s potential nomination for SEC chair suggests a revival of the government-industry ties seen during Trump’s earlier terms.
If Trump wins the presidency again, there may be a greater possibility for favorable regulatory adjustments within an industry that has faced numerous challenges and legal actions, including Robinhood’s recent scrutiny by the SEC.
Among the other candidates mentioned by Politico are Chris Giancarlo, a former chairman of the Commodity Futures Trading Commission (CFTC) known as “CryptoDad,” and current SEC commissioner Hester Peirce, who advocates for newer regulatory frameworks to foster innovation in the crypto sector.
Robinhood CLO Advocates for Cryptocurrency Regulation Changes
Gallagher has consistently been viewed favorably by Republican circles. Representative Bill Huizenga (R-Mich.) commended Gallagher’s credentials, highlighting the necessity for a leadership style that balances various perspectives rather than being strictly ideological. Nonetheless, reports suggest Gallagher may encounter a challenging confirmation process.
Democrats have shown hesitance toward appointing industry leaders to federal positions, primarily due to Robinhood’s controversial past, notably its involvement in the GameStop incident in 2021. Despite this, Gallagher assures that the company has since enhanced its compliance and risk management standards.
Gallagher’s plans for the SEC reportedly involve a more customized approach to regulating cryptocurrency, proposing a foundational registration system for crypto exchanges and brokers. He contends that, had he been in charge, the SEC would have already implemented clearer and more supportive regulations for the crypto industry.
Image courtesy of DALL-E, chart sourced from TradingView.com