Speaking to the crypto crowd at a Bitcoin conference back in July, former President Donald Trump did not hold back. He pledged that if he was re-elected, he would fire the head of the U.S. Securities and Exchange Commission (SEC). The crowd responded with loud cheers, showing strong support among cryptocurrency advocates for Trump’s financial regulation reform policy.
Trump Considering Robinhood’s Top Lawyer for the Head of SEC
The SEC chair slot has attracted interest as Trump’s transition team prepares recommendations for major financial regulatory roles. One frontrunner is Robinhood’s chief legal officer, Dan Gallagher, a former Republican SEC commissioner.Â
Gallagher, who served on the SEC from 2011 to 2015, is seen favourably by many in the cryptocurrency sector, with executives who donated to Trump’s campaign backing his candidacy, Reuters reported. Gallagher’s stance fits with Trump’s focus on rolling back financial regulation, a promise that appeals to both crypto supporters and traditional financial executives.
Other Potential Candidates on the List
Another leading candidate for SEC chair is Paul Atkins, a former Republican commissioner and current co-CEO of Patomak Global Partners. Atkins has a record of advocating deregulation and served on Trump’s transition team during his first term.
He was also a contender for the SEC role in 2016. Additionally, Robert Stebbins, a partner at the law firm Willkie Farr & Gallagher and former SEC general counsel under Trump, is on the shortlist.
Trump’s campaign has highlighted the former president’s intention to ease regulations on the cryptocurrency industry. Current SEC Chair Gary Gensler, whose term officially ends in 2026, has taken a hard line on the crypto sector, implementing rules that many companies view as restrictive.
Trump’s Vision for the Banking Sector
For the banking sector, Trump’s vision also includes cutting red tape. He aims to reverse regulations that require banks to hold higher capital reserves to guard against financial risks. This shift could impact rules put in place by the current Federal Reserve Vice Chair for Supervision Michael Barr, who supports the capital hikes that Trump has pledged to eliminate.
Michelle Bowman, a current Federal Reserve governor and former community banker known for opposing stringent capital requirements, is being considered for a key role in banking regulation.
Other names on the shortlist for banking regulator positions include Travis Hill, vice chairman of the Federal Deposit Insurance Corporation (FDIC), and Jonathan Gould, former chief counsel at the Office of the Comptroller of the Currency.
The Road Ahead under Trump’s Administration
While Trump has yet to release an official policy statement on financial regulation, his stance reflects a broader commitment to rolling back policies implemented by the Biden administration. These policy changes are part of Trump’s overall goal to strengthen the economy by reducing business restrictions, particularly in the banking and cryptocurrency sectors.
Finalizing these appointments is likely to take weeks as Trump’s team evaluates potential candidates. Karoline Leavitt, Trump’s national press secretary, confirmed that the former president is preparing to make decisions on these appointments soon.
The industry’s reaction to Trump’s proposed regulatory changes reflects both excitement and anticipation, particularly among cryptocurrency advocates who hope for a more favourable regulatory environment.
As Trump seeks to reclaim the White House, his promises to overhaul financial regulation continue to gain attention. By loosening rules in the banking and cryptocurrency sectors, Trump aims to drive economic growth while fostering innovation in the financial industry.