Trump Eyes Robinhood's Dan Gallagher to Replace SEC Head Gensler

According to a November 7 Reuters report, former U.S. President Donald Trump's transition team is considering Dan Gallagher, a pro-crypto lawyer and Robinhood's chief legal and compliance officer, as a potential replacement for Gary Gensler as Chairman of the U.S. Securities and Exchange Commission (SEC). Gallagher previously served as a Republican SEC commissioner from 2011 to 2015. He has gained support from the crypto industry due to his advocacy for treating cryptocurrencies as a unique asset class rather than securities.

During his presidential campaign, Trump strongly disapproved of Gensler, pledging to remove him on his first day in office. Gensler’s tenure has been marked by a strict stance on cryptocurrencies, with multiple lawsuits against prominent crypto firms and executives, including Coinbase, Binance, and Ripple. Trump’s national press secretary, Karoline Leavitt, told Reuters that decisions regarding appointments in a new Trump administration would be announced once finalized.

Gensler, appointed by President Joe Biden in 2021, has publicly stated his intention to serve his full term, which ends in 2026, or until “the ref calls the whistle.” Traditionally, SEC heads resign upon a shift in presidential administrations, but Gensler has not indicated that he will step down voluntarily if a Republican administration takes office.

A sitting U.S. president cannot directly fire an executive agency commissioner without cause. This rule, established in the 1930s to prevent excessive executive control over independent regulatory agencies, applies to the SEC chairman and other agency leaders, including the Federal Reserve Chair. Trump encountered a similar restriction with Jerome Powell, the current Federal Reserve Chair. Though Trump criticized Powell and hinted at wanting to replace him during his previous term, he acknowledged in a July interview with Bloomberg that Powell would likely remain in his position until the end of his term in May 2026.

When questioned about his future in a potential Trump administration, Powell confidently stated he would not be removed, emphasizing that U.S. law prevents the president from firing him without a valid reason. Powell was initially appointed Federal Reserve Chair by Trump in 2018 and has an extensive background in finance, having served on the Federal Reserve Board and as a private equity executive before his appointment.