- Dan Gallagher, Robinhood's common counsel, is a number one candidate for SEC chairman if Donald Trump wins a second time period.
- The SEC is investigating Robinhood's crypto enterprise, which might have an effect on Gallagher's probabilities at main the company.
- Gallagher's position at Robinhood and the GameStop controversy could complicate his affirmation as SEC chairman underneath a possible Trump administration.
Stories counsel Dan Gallagher, Robinhood's chief authorized officer and former SEC commissioner, could emerge as a robust candidate to steer the US Securities and Trade Fee (SEC) ought to Donald Trump regain the presidency.
Gallagher's potential nomination comes because the SEC is contemplating a doable lawsuit in opposition to Robinhood over its cryptocurrency actions, elevating questions on how that would have an effect on his candidacy.
Identified for his authorized data and political acumen, Gallagher has been tipped by insiders as a probable selection for the SEC's high position in a doable second Trump administration. His in depth expertise and former position on the SEC make him a pure match, based on former officers and authorized consultants. Nevertheless, his reference to Robinhood might complicate his management path because the SEC considers charging the corporate for its cryptocurrency-related enterprise.
SEC Scrutiny of Crypto Enterprise Robinhood
The SEC is reportedly investigating whether or not Robinhood acted as an unregistered broker-dealer and clearing company within the crypto house. If the case had been to proceed, it could mark present SEC Chairman Gary Gensler's additional efforts to control the rising cryptocurrency sector.
Additionally Learn: SEC Chairman 'Luddite'? Ripple CEO Says Gensler Dangers America's Tech Future
Providing a restricted variety of digital tokens, Robinhood differs from different platforms that present a wider vary of crypto merchandise. Gallagher stated Robinhood prioritized compliance, determined to restrict its cryptocurrency choices and keep away from income from merchandise resembling crypto lending.
Gallagher described the potential SEC lawsuit as weak, noting that Robinhood's cautious method to cryptocurrencies units it other than different platforms. He hinted that chasing Robinhood is perhaps a mistake. The SEC has not but commented on the continued investigation.
Gallagher's expertise and SEC challenges
Throughout Gallagher's time on the SEC underneath the Obama administration, he incessantly criticized the rules put in place after the 2008 monetary disaster. He was an early proponent of overhauling US inventory market buying and selling rules and expressed considerations in regards to the SEC's inside judicial system. His report has earned him respect in Republican circles, with some seeing his potential appointment as an extension of Trump's deregulatory insurance policies.
Nevertheless, Gallagher's hyperlinks to Robinhood might complicate his affirmation course of. Robinhood got here underneath intense scrutiny from lawmakers after the GameStop buying and selling fiasco in 2021, when the platform restricted customers from shopping for further shares throughout a market frenzy. Though Robinhood has since improved its threat administration, its actions through the GameStop incident stay controversial on Capitol Hill.
Additionally learn: SEC Chairman's stance on cryptocurrencies might have an effect on Biden's re-election bid
It stays unclear whether or not Gallagher would settle for the SEC chairman place. Whereas acknowledging the glory of being thought of, he expressed that he stays dedicated to his present position at Robinhood. Gallagher believes his expertise in each the private and non-private sectors offers useful management insights.
If Trump had been to appoint Gallagher, his affirmation might face opposition from Democrats and progressive lawmakers who usually oppose main regulatory businesses aware about the trade. Because the authorized scenario with crypto enterprise Robinhood doubtlessly escalates, Gallagher's SEC candidacy could entice much more scrutiny.
Disclaimer: The data supplied on this article is for informational and academic functions solely. This text doesn’t represent monetary recommendation or recommendation of any type. Coin Version shall not be accountable for any losses incurred because of using stated content material, services or products. Readers are suggested to train warning earlier than taking any motion associated to the Firm.
