Dan Gallagher is speculated to become the next chief of the US Securities and Exchange Commission (SEC) if Donald Trump wins the US Presidential election.
Gallagher is the Chief Legal Officer of Robinhood, an American financial services provider. He also has experience serving as the SEC Commissioner.
In this position, Gallagher scrutinized the regulatory landscape, particularly regarding rules enacted after the 2008 financial crisis.
According to some former SEC executives, Gallagher would be a natural choice for the position. Gallagher was the SEC Commissioner from 2011 to 2015.
Other likely candidates for SEC chairmanship, if Trump wins the elections, include Chris Giancarlo, the former Commodity Futures Trading Commission Chair; Robert Stebbins, former SEC General Counsel; and Hester Peirce, an incumbent SEC Commissioner.
Implications of Dan Gallagher’s Candidature
Dan Gallagher does not have a cordial relationship with the US Securities and Exchange Commission (SEC) in his current role as the Chief Legal Officer of Robinhood. As per reports, the SEC is currently enquiring about whether Robinhood is acting as an unregistered crypto broker-dealer.
Gallagher has criticized the SEC’s move to file a case against him and his organization. This case is frugal. He has made it clear that Robinhood has avoided operating in the risky areas of crypto trading to avoid any legal complications.
During his early tenure with the SEC, Gallagher also raised concerns about the review of trading practices in the U.S. stock market and the working of SEC’s internal courts, which have been declared unconstitutional in some instances by the Supreme Court.
If Dan Gallagher is elected as the SEC chief his already strenuous relationship with the SEC will become even more complex. Some market analysts consider him as the right choice to make the necessary changes in the regulatory body as Trump wants it to be.
Dan Gallagher shares some of Trump’s progressive viewpoints. So if Trump makes him the SEC chief, it would be easy for him to implement his progressive ideas regarding digital currency adoption.
What Makes Gallagher a Natural Choice?
The SEC and its incumbent Chief Gary Gensler’s dislike of crypto adoption is well-known. It is also clear that Trump is a pro-crypto campaigner and supports crypto adoption. If Trump wins the election, it is for sure that Gary Gensler will lose his power as the SEC Chair.
Dan Gallagher would be a natural choice because he is currently working in the cryptocurrency industry. If he is made the SEC chair, he can combine his industry expertise with his previous experience as the SEC Commissioner to power a market-friendly approach to instil growth.
Gallagher’s background at Robinhood and his expertise in finance and law will allow him to take a more favourable stance toward crypto adoption.
SEC Vs Robinhood Lawsuit
SEC’s lawsuit against Robinhood in matters of illegitimate crypto trading is yet another instance of the regulatory body’s attempt to crack down on the booming cryptocurrency market.
Robinhood is alleged by the SEC to operate as an unregistered broker-dealer in crypto and as a clearing agency. If the SEC decides to move forward with this lawsuit, it would cast a shadow over Gallagher’s candidacy for the post of SEC chief.
Gallagher has contempt of the SEC’s attempts at filing a lawsuit against his organization. He has made it clear that Robinhood offers trading in a fraction of crypto tokens compared to other similar organizations that have hundreds of crypto tokens traded on their platforms.
According to Gallagher, the SEC is hunting down an organization that is already following the regulatory norms. He thinks that the SEC is hunting down good actors in the name of unjust regulatory norms.
The Bottom Line
Donald Trump has already created headlines with his pro-crypto campaign. If he is elected as the US President and if he selects Dan Gallagher as the SEC chair, the United States will see a U-turn in its approach towards crypto.
The laws will be eased to accommodate the change as opposed to the incumbent, enforcement-heavy regulations. The US would eventually lead the digital currency space if this trend catches fire.
