By crypto.news | Created at 2024-11-23 17:44:42 | Updated at 2024-11-23 20:40:47
3 hours ago
Dan Gallagher, Robinhood Markets’ chief legal officer, has withdrawn from consideration to lead the U.S. Securities and Exchange Commission under the incoming Trump administration.
Gallagher’s decision to remove himself from consideration marks a major development in the search for Gary Gensler’s successor. Gensler has announced his planned departure for Jan. 20, 2025, concluding a tenure marked by major cryptocurrency industry oversight and enforcement actions.
According to Bloomberg, Gallagher wrote in an email:
“I am committed to Robinhood and our millions of customers who represent the new generation of retail investors.”
Gallagher also expressed his enthusiasm for working with the incoming Trump administration and future SEC chair to advance innovation and retail investor opportunities.
Gallagher served as an SEC commissioner earlier
Gallagher brings substantial regulatory experience, having served as an SEC commissioner from 2011 to 2015 and holding senior positions in the agency’s Division of Trading and Markets.
Since joining Robinhood in mid-2020, he has guided the company through the world of the meme stock trading phenomenon. His prior experience includes roles at WilmerHale and as chief legal officer at Mylan NV.
The crypto community had viewed Gallagher as a potential ally in implementing Trump’s pro-cryptocurrency agenda.
Rumors of Trump’s asking Gallagher to the lead the SEC began last month.
Gallagher’s name emerged at a time when tensions between the SEC and the crypto industry were at an all-time high. Under Gensler, the SEC has been cracking down on crypto exchanges like Coinbase, Kraken, Ripple and Binance, arguing that many cryptocurrencies should be classified as securities.
On January 20, 2025 I will be stepping down as @SECGov Chair.
A thread 🧵⬇️
Robinhood’s crypto division also found itself in the SEC’s crosshairs, receiving a Wells Notice in May — an indicator that charges could be forthcoming.
Three months later, OpenSea — the largest non-fungible tokens marketplace — received a Wells Notice as well. The SEC alleges that certain NFTs on the platform may be classified as securities. That’s a claim that could have serious repercussions for the entire NFT space (for more on that topic, listen to episode two of The Crypto.news Show).
The crypto industry typically argues that the current SEC framework doesn’t fit digital assets, creating a regulatory headache for companies trying to comply.
What’s next
Gallagher’s withdrawal affects the industry’s hopes for a more favorable regulatory environment. This is given his understanding of both traditional finance and digital asset markets.
In announcing his departure, Gensler highlighted the SEC’s mission of investor protection and market integrity. “The SEC is a remarkable agency. The staff & the commission are deeply mission-driven,” he stated on X.
The search for the next SEC chair continues as the cryptocurrency industry anticipates potential regulatory shifts under the incoming Trump administration.
Trump’s pro-crypto stance and promises aided in the overall bullish crypto market conditions. Bitcoin (BTC) has also retraced to the $98,000 level after surging above $99,000.
