Robinhood’s Dan Gallagher declines potential SEC chair role

Dan Gallagher, Robinhood Markets’ chief legal officer, has withdrawn as a candidate to lead the U.S. Securities and Exchange Commission under the incoming Trump administration.

Gallagher’s decision to exclude himself from consideration marks a major development in the search for Gary Gensler’s successor. Gensler announced his planned departure on January 20, 2025, completing his term marked by major cryptocurrency industry oversight and enforcement actions.

According to Bloomberg, Gallagher 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 at working with the incoming Trump administration and the future SEC chairman to advance innovation and retail investor opportunities.

Gallagher previously served as SEC commissioner

Gallagher has significant regulatory experience, having served as SEC commissioner from 2011 to 2015 and held senior positions in the agency’s Trading and Markets Division.

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

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

Rumors that Trump was inviting Gallagher to lead the SEC began last month.

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

I will leave my position on January 20, 2025 @SECGov Chair.

A topic 🧵⬇️

— Gary Gensler (@GaryGensler) November 21, 2024

Robinhood’s crypto division also found itself in the crosshairs of the SEC and received a Wells Notice in May; This was an indication that charges might be coming.

Three months later, OpenSea, the largest non-fungible token market, also received a Wells Notice. The SEC claims that some NFTs on the platform may be classified as securities. This is a claim that could have serious ramifications on the entire NFT space (listen to the second episode of The Crypto.news Show for more on this topic).

The crypto industry often argues that the current SEC framework does not suit digital assets and creates a regulatory headache for companies trying to comply.

what’s next

Gallagher’s withdrawal affects the industry’s hopes for a more favorable regulatory environment. This stems from his understanding of both traditional finance and digital asset markets.

In announcing his departure, Gensler emphasized the SEC’s mission of investor protection and market integrity. “The SEC is a remarkable institution. The staff and commission are deeply mission-focused,” said X.

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

Trump’s pro-crypto stance and promises have helped the overall bullish conditions of the crypto market. Bitcoin (BTC) also fell to the $98,000 level after rising above $99,000.