• Dan Gallagher, Robinhood's chief authorized officer, is a number one candidate to change into SEC chairman if Donald Trump wins a second time period.
• The SEC is investigating Robinhood's cryptocurrency enterprise, which might have an effect on Gallagher's probabilities of main the company.
• Gallagher's function at Robinhood and the GameStop controversy might complicate his affirmation as SEC chairman beneath a possible Trump administration.

Robinhood Chief Authorized Officer and former SEC Commissioner Dan Gallagher has emerged as a powerful candidate to guide the U.S. Securities and Trade Fee (SEC) if Donald Trump regains the presidency, in response to experiences. There’s a chance.

Gallagher's nomination comes because the SEC considers a potential lawsuit towards Robinhood over its crypto actions, elevating questions on how this may have an effect on his candidacy. .

Gallagher is thought for his authorized experience and political acumen, and insiders say he’s prone to take the highest job on the SEC in a potential second Trump administration. . Former officers and authorized consultants say his in depth expertise and former roles on the SEC make him a pure match. However his ties to Robinhood might complicate his path to management because the SEC considers expenses towards the corporate over its crypto-related enterprise.

SEC Oversight of Robinhood's Cryptocurrency Enterprise

The SEC is reportedly investigating whether or not Robinhood operated as an unregistered broker-dealer and clearinghouse within the cryptocurrency area. If pursued, this case would mark a brand new effort by present SEC Chairman Gary Gensler to control the rising crypto sector.

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Robinhood, which affords a restricted variety of digital tokens, differs from different platforms that supply a wider vary of crypto merchandise. Gallagher stated Robinhood prioritized compliance, selecting to restrict its providing of cryptocurrencies and keep away from income from merchandise akin to crypto lending.

Gallagher famous that Robinhood's cautious method to cryptocurrencies units it aside from different platforms, and stated the probability of a possible SEC lawsuit is weak. He steered that pursuing Robinhood might be a mistake. The SEC has not but commented on the continued investigation.

Mr. Gallagher's SEC expertise and challenges

Throughout his time on the SEC beneath the Obama administration, Gallagher was a frequent critic of rules put in place after the 2008 monetary disaster. He was an early advocate of overhauling U.S. inventory market buying and selling rules and expressed considerations in regards to the SEC's inner courtroom system. His document has earned him respect inside the Republican Social gathering, and a few see his potential appointment as an extension of President Trump's deregulatory agenda.

However Gallagher's relationship with Robinhood might complicate the approval course of. After the GameStop buying and selling debacle in 2021, Robinhood got here beneath intense scrutiny from lawmakers after the platform restricted customers from shopping for further shares throughout the peak of the market frenzy. Robinhood has since improved its threat administration, however its actions throughout the GameStop incident stay controversial on Capitol Hill.

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It stays unclear whether or not Gallagher will settle for the SEC chairman place. Whereas he’s honored to be thought of, he stated he stays totally dedicated to his present function at Robinhood. Mr. Gallagher believes that his expertise in each the private and non-private sectors supplies priceless perception for management.

If Mr. Trump nominates Mr. Gallagher, his affirmation might face resistance from Democrats and progressive lawmakers who usually oppose regulatory management by business gamers. Gallagher's candidacy for the SEC might draw much more scrutiny because the authorized scenario surrounding Robinhood's crypto enterprise might escalate.