A major overhaul is about to change the US regulatory landscape, and all of this will have a lot to do with incoming President Donald Trump and his top picks to guide the future direction of the SEC.
Richard Farley, a veteran partner at the New York law firm Kramer Levin Naftalis & Frankel, has made a name for himself on Wall Street with his extensive experience in leveraged finance, particularly leveraged finance.
Trump’s Handpick?
As co-head of Kramer Levin’s Leveraged Finance Group, Farley advised private equity firms on a number of issues that propelled him as a top contender for the chairmanship of the U.S. Securities and Exchange Commission.
According to reports, Farley has been shortlisted by Donald Trump’s transition team to become the new SEC Chairman to replace outgoing Gary Gensler.
Trump Eyes Richard Farley on Nomination for SEC Chairman
Word in the series is that Trump is considering Richard Farley, a top Wall Street lawyer, for the role of leading the SEC.
With this change, we can see a shift from Gensler’s anti-crypto attack to a pro-crypto stance that… pic.twitter.com/YnDauyExhG
-Roundtable by Mario Nawfal (@RoundtableSpace) November 8, 2024
Strong Political Ties and GOP Alignment
Farley’s election has more to do with it than his Wall Street background; and comes with a large number of political connections. Farley’s wife, Chivacci “Chele” Farley, is a former New York City GOP finance chair and an elected official who ran as a Republican, making the Farley family a conservative party.
While Farley himself was originally a Democrat, he has recently shifted his support to the GOP, another connection to Trump’s inner circle. Acquaintance with Robert F. Kennedy Jr., a staunch Trump supporter and likely presidential nominee, adds another layer to his political connections and increases the potential for a role at the SEC.
The SEC’s Key Changes And Crypto Stance
The Trump administration has said it would like to rebalance the SEC’s focus on basic consumer protections, moving away from Gary Gensler, whose regulatory approach has been harsh on the industry, at least in matters surrounding cryptocurrency.
Gensler was appointed by President Joe Biden in January 2021 and will serve until January 5, 2026, but the president can fire him earlier if there is good cause. Of course, the camp of Donald Trump has shown a preference for friends in the cryptocurrency-friendly seats of the SEC, being on the side of liberal standards of regulatory conditions in the crypto sphere.
Farley has not made public announcements about crypto, but, by all indications, the prospect of his taking over has sparked the interest of those seeking pro-crypto policies.
Other Candidates and Implications for Future SEC Leadership
Farley is among a handful of finalists for the position, each of whom will bring a particular flavor to policymaking. Others frequently named include Dan Gallagher, Chief Legal Officer at Robinhood and former SEC commissioner; Chris Giancarlo, former chairman of the Commodity Futures Trading Commission, considered to be very friendly to digital assets; and Hester Peirce, the current commissioner of the SEC, who has promoted the crypto-friendly idea for years.
The SEC’s final chairman, of course, could shape the course the agency takes in regulating digital assets and has far-reaching consequences for the industry’s future.
Featured image from CNBC, chart from TradingView