SEC Scrutinizes Robinhood as Trump Eyes Dan Gallagher for High Function

• Dan Gallagher, Robinhood’s Chief Authorized Officer, is a number one candidate for SEC Chair if Donald Trump wins a second time period.
• The SEC is investigating Robinhood’s crypto enterprise, which might influence Gallagher’s possibilities of main the company.
• Gallagher’s position at Robinhood and the GameStop controversy could complicate his affirmation as SEC Chair below a possible Trump administration.

Reviews counsel that Dan Gallagher, Robinhood’s Chief Authorized Officer and a former SEC commissioner, could emerge as a powerful candidate to steer the U.S. Securities and Alternate Fee (SEC) if Donald Trump have been to reclaim Presidency.

Gallagher’s potential nomination comes because the SEC considers a doable lawsuit in opposition to Robinhood over its cryptocurrency actions, elevating questions on how this would possibly have an effect on his candidacy.

Gallagher, recognized for his authorized experience and political acumen, has been recognized by insiders as a possible alternative for the SEC’s high position in a doable second Trump administration. In accordance with former officers and authorized specialists, his in depth expertise and prior position on the SEC make him a pure match. Nonetheless, his connection to Robinhood might complicate his path to management, because the SEC considers charging the corporate over its crypto-related enterprise.

SEC Scrutiny of Robinhood’s Crypto Enterprise

The SEC is reportedly investigating whether or not Robinhood has been working as an unregistered broker-dealer and clearing company within the crypto house. The case, if pursued, would mark one other effort by present SEC Chair Gary Gensler to manage the rising cryptocurrency sector.

Learn additionally: SEC Chair a “Luddite”? Ripple CEO Says Gensler Dangers US Tech Future

Robinhood, which gives a restricted variety of digital tokens, differs from different platforms that present a wider array of crypto merchandise. Gallagher said that Robinhood has prioritized compliance, opting to restrict its cryptocurrency choices, avoiding income from merchandise like crypto lending.

Gallagher described the SEC’s potential lawsuit as weak, noting that Robinhood’s cautious strategy to crypto units it other than different platforms. He steered that pursuing Robinhood could possibly be a mistake. The SEC has not but commented on the continuing investigation.

Gallagher’s SEC Expertise and Challenges

Throughout Gallagher’s tenure on the SEC below the Obama administration, he incessantly criticized rules launched after the 2008 monetary disaster. He was an early proponent of reviewing U.S. inventory market buying and selling rules and voiced issues in regards to the SEC’s inner court docket system. His report has earned him respect inside Republican circles, with some viewing his potential appointment as an extension of Trump’s deregulatory insurance policies.

Nonetheless, Gallagher’s ties to Robinhood might complicate his affirmation course of. Robinhood got here below heavy scrutiny from lawmakers after the 2021 GameStop buying and selling fiasco, when the platform restricted customers from shopping for extra shares throughout a market frenzy. Though Robinhood has since improved its threat administration, its actions through the GameStop incident stay controversial on Capitol Hill.

Learn additionally: SEC Chair’s Stance on Crypto Might Affect Biden’s Re-election Bid

It stays unclear whether or not Gallagher would settle for the place of SEC Chair. Whereas he acknowledged the dignity of being thought of, he expressed that he stays dedicated to his present position at Robinhood. Gallagher believes that his expertise in each the private and non-private sectors gives useful insights for management.

Ought to Trump nominate Gallagher, his affirmation might face resistance from Democrats and progressive lawmakers, who sometimes oppose trade insiders main regulatory companies. Because the authorized state of affairs with Robinhood’s crypto enterprise probably escalates, Gallagher’s SEC candidacy could draw much more scrutiny.