Article reprinted from: PA Recommended Read
Written by: Zhao Yuhe
Source: Wall Street Journal
Insiders told the media that Richard Farley, a partner at Kramer Levin Naftalis & Frankel, and Norm Champ, a partner at Kirkland & Ellis, are set to be candidates to succeed Gary Gensler as chair of the U.S. Securities and Exchange Commission (SEC).
Additionally, media reports indicate that Robinhood's Chief Legal Officer Dan Gallagher, current SEC Commissioner Mark Uyeda, and former Commodity Futures Trading Commission (CFTC) Chair Heath Tarbert are also among the candidates.
Other sources told the media that former SEC Commissioner Paul Atkins and Willkie Farr & Gallagher partner Robert Stebbins are also under consideration. Reuters previously reported that Atkins served in Trump's transition team in 2016 and was a strong contender for the SEC chair position that year.
Two insiders told the media that Robinhood's Chief Legal Officer Gallagher is a popular candidate among cryptocurrency industry executives, who have donated millions of dollars to Trump's Republican campaign. Currently, Gallagher has the highest likelihood of being appointed, but discussions are still ongoing. Trump's press secretary Karoline Leavitt stated, 'President-elect Trump will soon begin deciding who will serve in his second administration. These decisions will be announced as they are made.'
Media reports indicate that members of President-elect Trump's transition team and other advisors have begun discussions with potential candidates after the election on Tuesday. Discussions are ongoing, and it may take weeks to select candidates.
Whoever it is, will relax regulation.
Analysts believe that regardless of Trump's choice, the next SEC head may review major rules established during Gensler's tenure and seek to reduce regulation in the cryptocurrency industry to comply with securities laws.
Gensler was nominated by current President Biden in February 2021 and was sworn in two months later. Gensler's term ends in 2026, but he has stated that he will step down when a new Republican administration takes office.
Trump promised during his campaign to promote cryptocurrency development and reform the SEC to attract funding from the cryptocurrency industry. However, Gensler has taken a tough stance on the industry since taking office, claiming it disregards SEC regulations. Reuters previously reported that cryptocurrency companies have been pushing for the election of an SEC chair who can eliminate cumbersome regulatory policies.
Many analysts believe that Republican SEC Commissioner and cryptocurrency supporter Hester Peirce is a strong candidate for SEC chair, but sources told the media that she has informed some people that she does not want to take the position.
Although Trump has made few remarks on financial policy this time, he has repeatedly promised to cut 'burdensome' regulations. Bankers and lobbyists expect the Trump administration to repeal or significantly weaken the Basel accords that require large banks to increase capital adequacy ratios, as well as reduce restrictions on mergers and acquisitions.
FDIC and the Federal Reserve will also be restructured.
Additionally, Trump could remove Acting Comptroller of the Currency Michael Hsu from his position on his first day in office, but restructuring the top regulatory positions at the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) could take months.
Among the candidates considered by Trump's team for senior bank regulatory officials is Federal Reserve Governor Michelle Bowman. She has criticized the capital adequacy increases led by Vice Chairman Michael Barr, who is responsible for regulation, and has advocated for loosening bank rules and regulations. Insiders told the media that Barr has indicated his intention to fulfill his vice chair term, which ends in 2026, and it is currently unclear whether Trump will attempt to remove Barr from his position early.
Insiders also revealed to the media that Travis Hill, the Republican vice chair of the FDIC board and former Senate Banking Committee lawyer, is also on the shortlist for senior bank regulatory positions. Hill has also opposed the Basel rules. Additionally, Jonathan Gould, a partner at Jones Day and former Senior Deputy Comptroller and Chief Legal Counsel from 2018 to 2021, is also being considered.