Original source: Zhao Yuhe, Chain Catcher
Reprinted: Koala, Mars Finance
Insiders have informed the media that Richard Farley, a partner at Kramer Levin Naftalis & Frankel law firm, and Norm Champ, a partner at Kirkland & Ellis law firm, will be candidates to succeed Gary Gensler as Chairman of the U.S. Securities and Exchange Commission (SEC).
In addition, media reports indicate that Robinhood's Chief Legal Officer Dan Gallagher, current SEC Commissioner Mark Uyeda, and former Commodity Futures Trading Commission (CFTC) Chairman Heath Tarbert are also among the candidates.
Other sources have informed the media that former SEC Commissioner Paul Atkins and Robert Stebbins, a partner at Willkie Farr & Gallagher law firm, are also under consideration. According to previous reports by Reuters, Atkins served on Trump's transition team in 2016 and was a strong contender for the SEC chairman position that year.
Two insiders have told the media that Robinhood's Chief Legal Officer Gallagher is a popular candidate among cryptocurrency industry executives, who have donated millions to Trump's Republican campaign. Currently, Gallagher has the highest likelihood of being appointed, but discussions are ongoing. Trump's press secretary Karoline Leavitt stated in a statement: "President-elect Trump will soon begin deciding who will serve in his second administration. These decisions will be announced when made."
Some media reports indicate that members of incoming President Trump's transition team and other advisors have begun talks with potential candidates after the elections on Tuesday. Discussions are ongoing, and it may take several weeks to select a candidate.
Whoever it is will ease regulations
Analysts believe that regardless of who Trump's choice is, the next SEC head may review the 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 U.S. President Biden in February 2021 and was sworn in two months later. Gensler's term ends in 2026, but he has indicated he will step down when a new Republican administration takes office.
Trump pledged during his campaign to promote the development of cryptocurrencies and reform the SEC to attract capital from the crypto industry. However, Gensler has taken a hardline approach to the industry since taking office, stating that it ignores SEC regulations. Reuters previously reported that crypto companies have been pushing to elect an SEC chair who can abolish cumbersome regulatory policies.
Many analysts believe that Republican SEC Commissioner and cryptocurrency supporter Hester Peirce is a strong candidate for SEC chair, but sources have revealed to the media that she has told some people she does not want to take the position.
Although Trump has made few comments on financial policy this time, he has repeatedly promised to cut "burdensome" regulations. Bankers and lobbyists expect the Trump administration to abolish or significantly weaken the Basel Accord, which requires large banks to increase capital adequacy, and to reduce restrictions on mergers and acquisitions.
FDIC and the Federal Reserve will also be reorganized
In addition, Trump can remove Acting Comptroller of the Currency Michael Hsu from office on his first day, but reorganizing the top regulatory positions at the Federal Reserve and the FDIC board may take several months.
Among the candidates being considered by Trump's team for senior banking regulatory officials is Federal Reserve Governor Michelle Bowman. She has criticized the capital adequacy improvements led by Vice Chairman Michael Barr, who is responsible for regulation, and advocates for loosening bank rules and regulations. Insiders have informed the media that Barr has stated he intends to serve out his vice chair term until 2026, and it is currently unclear if Trump will attempt to remove Barr from his position early.
Insiders have also revealed to the media that FDIC board's Republican Vice Chairman, former Senate Banking Committee lawyer Travis Hill, is also on the shortlist for senior banking regulation positions. Hill has also opposed Basel rules. Additionally, Jonathan Gould, a partner at Jones Day law firm and former Senior Deputy Comptroller and Chief Legal Counsel of the Office of the Comptroller of the Currency from 2018 to 2021, is also under consideration.