Robinhood's Dan Gallagher Turns Down Possible SEC Chairman Job

Dan Gallagher, chief legal officer at Robinhood Markets, has withdrawn from consideration to lead the U.S. Securities and Exchange Commission under the incoming Trump administration.

Gallagher's decision to withdraw from consideration marks a significant development in the search for Gary Gensler's successor. Gensler has announced his planned departure on January 20, 2025, concluding a tenure marked by significant oversight and enforcement actions of the cryptocurrency industry.

According BloombergGallagher wrote in an email:

“I am committed to Robinhood and our millions of customers who represent the next generation of retail investors.”

Gallagher also expressed his excitement about working with the incoming Trump administration and the future SEC Chairman to promote innovation and opportunities for retail investors.

Gallagher previously served as commissioner of the SEC

Gallagher brings substantial regulatory experience, having served as SEC Commissioner from 2011 to 2015 and held senior positions in the agency's Division of Trading and Markets.

Since joining Robinhood in mid-2020, he has guided the company through the world of the meme stock trading phenomenon. His previous experience includes positions at WilmerHale and as chief legal officer at Mylan NV.

The crypto community had viewed Gallagher as a potential ally in implementing Trump's pro-cryptocurrency agenda.

Rumors that Trump would ask Gallagher to lead the SEC began last month.

Gallagher's name came up at a time when tensions between the SEC and the crypto industry were at an all-time high. Under Gensler, the SEC has been cracking down on crypto exchanges such as Coinbase, Kraken, Ripple and Binance, arguing that many cryptocurrencies should be classified as securities.

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Robinhood's cryptocurrency division also found itself in the SEC's crosshairs, receiving a Wells Notice in May, an indicator that charges could be filed in the future.

Three months later, OpenSea, the largest non-fungible token marketplace, also received a Wells Notice. The SEC alleges that certain nfts on the platform may be classified as securities. That's a claim that could have serious repercussions for the entire nft space (for more on that topic, listen to episode two of The crypto.news Show).

The crypto industry often argues that the SEC's current framework does not fit digital assets, creating a regulatory headache for companies trying to comply.

What's next?

Gallagher's withdrawal hurts the industry's hopes for a more favorable regulatory environment. This is due to his knowledge of traditional financial and digital asset markets.

In announcing his departure, Gensler highlighted the SEC's mission to protect investors and market integrity. “The SEC is an extraordinary agency. The staff and commission are deeply mission-driven,” he stated in x.

The search for the next SEC chair continues as the cryptocurrency industry anticipates potential regulatory changes under the incoming Trump administration.

Trump's pro-cryptocurrency stance and promises helped the overall bullish cryptocurrency market conditions. bitcoin (btc) has also retreated towards the $98,000 level after breaking above $99,000.