Author: Zhao Yuhe, Wall Street View

Sources 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 Chairman of the Commodity Futures Trading Commission (CFTC) 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, are also considering it. According to Reuters, Atkins served on Trump's transition team in 2016 and was a strong contender for the SEC chairman position that year.

Two insiders told the media that Robinhood's Chief Legal Officer Gallagher is a popular candidate among executives in the cryptocurrency industry who have donated millions of dollars to Trump's Republican campaign. Currently, Gallagher is the most likely appointee, but discussions are still ongoing. Trump's press secretary, Karoline Leavitt, 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 President-elect Trump's transition team and other advisers have begun talks with potential candidates on Tuesday after the election. Discussions are ongoing and it may take weeks to select the candidates.

No matter who, everyone will relax supervision.

Analysts believe that whoever Trump chooses, the next SEC head may review the major rules set 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 of the United States, Biden, in February 2021 and was sworn in two months later. Gensler's term will end in 2026, but he has stated that he will step down when the new Republican government takes office.

Trump promised during his campaign to promote the development of Crypto Assets and reform the SEC to attract funds for the encryption industry. However, Gensler, after taking office, has launched a severe crackdown on the industry, accusing it of ignoring SEC regulations. Reuters previously reported that encryption companies have been pushing for the election of a SEC chairman who can abolish cumbersome regulatory policies.

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

Although Trump did not make many statements on financial policy this time, he has repeatedly promised to reduce the 'burdensome' regulations. Bankers and lobbyists expect the Trump administration to repeal or significantly weaken the Basel agreements that require large banks to increase their capital adequacy ratios, as well as to reduce restrictions on mergers and acquisitions.

FDIC and the Federal Reserve will also be reorganized.

In addition, Trump can dismiss Michael Hsu, Comptroller of the Currency, on his first day in office, but it may take months to restructure the top regulatory position of the Federal Reserve 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 bank regulatory officials is Michelle Bowman, a Fed governor. She has criticized the capital adequacy enhancement led by Michael Barr, the vice chairman responsible for regulation at the Fed, and advocated for relaxation of bank rules and regulations. Sources familiar with the matter told the media that Barr had expressed his intention to serve until the end of his term as vice chairman in 2026, and it is currently unclear whether Trump will attempt to remove Barr from his position ahead of schedule.

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 Deputy Comptroller for the Office of the Comptroller of the Currency and Chief Counsel from 2018 to 2021, is also under consideration.