Galaxy Digital CEO Mike Novogratz names Republican SEC Commissioner Hester Peirce and Robinhood Chief Legal Officer Dan Gallagher as candidates for SEC chairman when Donald Trump returns to office.
“I know [Peirce] is probably throwing his name into the hat,” he told CNBC on Wednesday. “Robinhood’s legal director has been thrown in. I’m not sure the specific person matters, as long as he’s very open to the industry.”
He added that he believesTrump would not have chosen someone who opposes the industry. Novogratz preferred Vice President Kamala Harris to Trump during the election. However, he seemed pleased with Trump’s victory.
Responding to the Republican candidate’s victory, he told CNBC that he “couldn’t be more optimistic” about the cryptocurrency industry, now that the U.S. has a president dedicated to supporting it.
Trump’s victory raises optimism about major changes in cryptocurrency policy
The cryptocurrency director pointed out that the future of the industry in the country depends on the major financial regulators. These include the OCC, FDIC and SEC. He suggested that having leaders with a supportive and progressive approach to cryptocurrencies could significantly change the trajectory of the industry.
Trump’s victory, in particular, marks a turning point for the US cryptocurrency industry. He is expected to push for regulatory reform, increase domestic mining and create a national bitcoin reserve, transforming the digital asset landscape.
Novogratz said that having policies in place, such as allowing banks to store cryptocurrencies on their balance sheets, would lead to significant capital inflows, attracting billions, perhaps even hundreds of billions, into the cryptocurrency market
The two potential SEC nominees identified by Novogratz bring significant regulatory experience.
Peirce has openly criticized the SEC, under the Biden administration, for its strict approach to regulating cryptocurrencies. He says the agency has failed to live up to its responsibilities and should provide clearer guidelines to encourage innovation and growth in the industry.
She also expressed concern about the SEC’s focus on enforcement rather than proactive regulation. In addition, she argued that treating cryptocurrencies like traditional securities could stifle innovation and create unnecessary barriers.
Meanwhile, Dan Gallagher, general counsel at Robinhood, strongly supported a pro-business regulatory approach, in line with Trump’s call for less regulation. At Robinhood, he has contributed to discussions on retail and cryptocurrency regulation, making him a compelling candidate for potential SEC policy reform.
In addition, Gallagher’s experience as an SEC commissioner from 2011 to 2015 gives him relevant expertise in securities regulation.
Politico reported last month that Gallagher has a strong reputation in Republican circles and that he is seen as a prime candidate for SEC chairman. According to reports, one former senior SEC official called him a “natural choice” for the position.
