Author: Zhao Yuhe

Source: Wall Street News

Insiders have revealed to the media that Richard Farley, a partner at Kramer Levin Naftalis & Frankel, and Norm Champ, a partner at Kirkland & Ellis, will be candidates to succeed Gary Gensler as chairman of the U.S. Securities and Exchange Commission (SEC).

In addition, there are media reports 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 told 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 Reuters, Atkins served on President Trump's transition team in 2016 and was a strong contender for the position of SEC chairman that year.

Two sources familiar with the matter told the media that Robinhood's Chief Legal Officer Gallagher is a popular candidate among executives in the cryptocurrency industry, many of whom have donated millions of dollars to Trump's Republican campaign. Currently, Gallagher is the most likely appointee, but discussions are still ongoing. Karoline Leavitt, Trump's press secretary, said in a statement, 'President-elect Trump will soon begin deciding who will serve in his second administration. These decisions will be announced when they are made.'

Some media have reported that members of the transition team of President-elect Trump and other advisors have begun talks with potential candidates since the end of the election on Tuesday. Discussions are still ongoing, and it may take several weeks to select a candidate.

Everyone will relax supervision

Analysis believes that regardless of who Trump chooses, the next SEC chairman may review the major rules formulated during Gensler's tenure and seek to reduce regulation in the Digital Money industry to comply with securities laws.

Gensler was nominated by the current President Biden in February 2021 and was sworn in two months later. Gensler's term will end in 2026, but he said he would step down when the new Republican government takes office.

During his campaign, Trump promised to promote the development of Crypto Assets and reform the SEC to attract funding for the encryption industry. However, after Gensler took office, he cracked down on the industry, saying it ignored SEC regulations. Reuters previously reported that encryption companies have been pushing for the election of a new SEC chairman who can abolish cumbersome regulatory policies. 01928374656574839201

Many analysts believe that Hester Peirce, a Republican SEC commissioner and cryptocurrency supporter, is a strong candidate for SEC chairman, but sources have told the media that she has informed some people that she does not want the position.

Although Trump did not make many 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 agreements 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

In addition, Trump can remove Michael Hsu, Comptroller of the Currency, on the first day of his term, but it may take months to reorganize the top regulatory positions of the Fed and the board of the Federal Deposit Insurance Corporation (FDIC).

Among the candidates considered by the Trump team for inclusion in the list of senior banking regulatory officials is Michelle Bowman, a member of the Federal Reserve Board. She has criticized the capital adequacy ratio increase led by Michael Barr, the vice chairman responsible for regulation at the Federal Reserve, and advocated for relaxing bank rules and regulations. According to insiders, Barr has stated his intention to serve out his term as vice chairman until 2026, and it is currently unclear whether Trump will attempt to remove Barr from his position prematurely.

Insiders also revealed to the media that Travis Hill, the Republican Vice Chairman of the FDIC board and former lawyer for the Senate Banking Committee, is also on the list of candidates for senior banking regulatory positions. Hill is also opposed to Basel rules. In addition, Jonathan Gould, a partner at Jones Day law firm and former Senior Deputy Comptroller and Chief Counsel at the Office of the Comptroller of the Currency from 2018 to 2021, is also under consideration.