Robinhood's HOOD Chief Legal Officer to Replace Gensler as SEC Chair Under Trump

Donald Trump is reportedly considering Dan Gallagher, Robinhood’s Chief Legal Officer, as his choice to replace Gary Gensler as head of the Securities and Exchange Commission (SEC) if he returns to the presidency.

Gallagher, a former SEC commissioner, has emerged as a leading contender, according to insiders, including former regulators and lobbyists. His background aligns with Trump’s priorities, leading many to view him as a "natural choice" for the role.

This news comes at a time when Gensler is reportedly preparing a lawsuit against Robinhood, scrutinizing its crypto business. The SEC is investigating whether Robinhood has been operating as an unregistered broker-dealer and clearing agency in the cryptocurrency market.

If the SEC proceeds with charges, Gallagher could find himself in an awkward legal conflict as Trump’s potential SEC head.

Gallagher has criticized the SEC's potential case against Robinhood, calling it weak. "It's a dog of a case," he said. While other platforms have been heavily involved in crypto, listing numerous tokens, Robinhood has taken a more cautious approach.

Gallagher emphasized that Robinhood does not offer crypto lending or staking products, unlike many other firms. He believes the company's conservative stance should set it apart in the SEC’s eyes.

"We’ve deliberately held back on listing more coins, forgoing potential revenue. I think that puts us in a very unique position," Gallagher said. "Going after the good guys is bad policy."