In a growing story from Politico, a potential conflict between the Wall Street regulator and Robinhood Crypto is coming. As the Securities and Exchange Commission (SEC) prepares to scrutinize Robinhood’s cryptocurrency operations, legal executive Dan Gallagher is emerging as a leading candidate to lead the SEC should Donald Trump confirm another term as president.
Potential SEC Chairman
As the political climate changes, crypto is at the forefront of the upcoming elections, the appointment of Gallagher to the chairmanship of the SEC indicates a possible return to the government-industry department, reminiscent of the Trump administration at the beginning.
In the event that former President Trump secures a seat in the Oval Office, there is certainly a great opportunity for a positive change of control in the industry, which has been characterized by inappropriate actions and lawsuits, and Robinhood is one of the last companies. target center this year.
Other words mentioned by Politico in this role include former Commodity Futures Trading Commission (CFTC) chairman Chris Giancarlo, known as “CryptoDad”, and current SEC commissioner Hester Peirce, who has been a vocal supporter of innovation and a new regulatory framework for the crypto industry.
Robinhood CLO Promises Crypto Transformation
Gallagher has long been seen as a favorite among Republicans. Representative Bill Huizenga (R-Mich.) praised Gallagher’s qualifications, noting the importance of thoughtful leadership that is not driven solely by ideology. Aside from this, a Politico report notes that Robinhood’s CLO may face a contentious approval process.
Democrats have expressed skepticism about industry insiders leading the agency’s regulators, especially given Robinhood’s “controversial history,” including its actions during GameStop’s 2021 trade turmoil. However, Gallagher insists that the company has since improved its compliance with risk management procedures.
Gallagher’s vision for the SEC reportedly includes a more consistent approach to cryptocurrency regulation, promoting a basic registration system for crypto exchanges and consumers. He believes that if he had been in charge in recent years, the SEC would have already established clear, pro-industry rules.
Featured image from DALL-E, chart from TradingView.com
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