In a growing story from Politico, a possible conflict between Wall Road’s regulator and Robinhood Crypto is looming. Because the Securities and Alternate Fee (SEC) prepares to scrutinize Robinhood’s cryptocurrency operations, chief authorized officer Dan Gallagher is rising as a number one candidate to go the SEC ought to Donald Trump safe one other time period as president.
Potential SEC Chair Candidates
Because the political panorama shifts, with crypto on the forefront of the upcoming election, Gallagher’s candidacy for SEC chair alerts a possible return to the government-industry door, harking back to the early Trump administration.
In a state of affairs the place former President Trump secures the seat within the Oval Workplace, there may be actually a higher probability of constructive regulatory change for the {industry}, which has been characterised by inappropriate actions and lawsuits, with Robinhood being one of many final companies focused by the company this 12 months.
Different names talked about by Politico for the function embody former Commodity Futures Buying and selling Fee (CFTC) chairman Chris Giancarlo, referred to as “CryptoDad”, and present SEC commissioner Hester Peirce, who has been a vocal supporter of innovation and a brand new regulatory framework for the crypto {industry}.
Robinhood CLO Pledges Crypto Reform
Gallagher has lengthy been seen as a most well-liked alternative amongst Republicans. Consultant Invoice Huizenga (R-Mich.) praised Gallagher’s {qualifications}, noting the significance of considerate management that isn’t pushed solely by ideology. Regardless of this, the Politico report notes that Robinhood’s CLO may face a contentious affirmation course of.
Democrats have beforehand expressed skepticism about {industry} insiders main federal regulators, particularly given Robinhood’s “controversial historical past”, together with its actions in the course of the GameStop buying and selling frenzy in 2021. Nonetheless, Gallagher insists that the corporate has since improved its compliance and danger administration protocols.
Gallagher’s imaginative and prescient for the SEC reportedly features a extra tailor-made method to cryptocurrency regulation, advocating a primary registration regime for crypto exchanges and brokers. He believes that if he had been in cost in recent times, the SEC would have already established clearer, extra supportive laws for the {industry}.
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