As President-Elect Donald Trump prepares for his administration, his transition team is actively compiling a list of potential appointees for critical positions within major financial regulatory agencies. According to a report from Reuters dated November 7, discussions are ongoing concerning a range of candidates, particularly focusing on those with a strong legal background, mainly corporate attorneys, and individuals with ties to the Republican Party. This preliminary shortlist is rumored to be finalized shortly, setting the stage for a potential overhaul of the regulatory landscape that has developed under the previous administration.
At the forefront of these discussions is the future leadership of the Securities and Exchange Commission (SEC). Prominent figures such as Dan Gallagher, currently the chief legal officer of the online brokerage firm Robinhood and a former SEC commissioner, are being considered for the position. Gallagher’s candidacy is particularly noteworthy due to his favorable relationship with the cryptocurrency sector, which has significantly supported Trump’s political endeavors. His appointment could symbolize a pivotal shift in the SEC’s approach to crypto regulations, especially in stark contrast to current Chair Gary Gensler’s firm regulatory stance.
Another contender is Paul Atkins, also a former SEC commissioner, who now leads consulting firm Patomak Global Partners. Both Gallagher and Atkins would likely embrace less restrictive regulations that align with Trump’s overarching goal of rolling back what he terms “burdensome” oversight set during the Biden administration. An additional candidate, Robert Stebbins, who is a partner at Willkie Farr & Gallagher and previously served as the SEC general counsel during Trump’s first term, also remains under consideration, adding another layer of legal expertise to the mix.
Beyond the SEC, Trump’s potential appointees could reshape regulatory frameworks across various financial institutions. Notably, Trump is keen on revisiting the Basel rules, which impose higher capital requirements on large banks—a move he has characterized as overly restrictive. This immediate opportunity allows him to replace the Acting Comptroller of the Currency, Michael Hsu, on Day One of his administration. However, deeper systemic changes within larger entities such as the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) may require more time and negotiation.
In terms of candidates for these pivotal banking roles, individuals like Fed Governor Michelle Bowman, who advocates for easing regulations, and Travis Hill, vice chairman of the FDIC Board, have emerged as strong possibilities. Additionally, Jonathan Gould, a former top deputy at the Office of the Comptroller of the Currency, is also in the mix, indicating that Trump’s team is considering a broad spectrum of candidates who align with his regulatory philosophies.
A crucial component of this transition is Trump’s engagement with the crypto industry, which has been a significant financial backer. His administration’s intent to promote Bitcoin and reform SEC regulations represents an evident alignment with the priorities of many in the crypto sphere. This coalition aims to pave the way for a more favorable regulatory environment, prioritizing innovation over compliance—in stark contrast to Gensler’s approach, which has been viewed as more stringent.
As Trump’s administration takes shape, the choices made during this transition period will have lasting impacts on financial regulation and the evolving relationship between government and emerging technologies like cryptocurrency. The anticipation surrounding these appointments highlights a broader ideological shift potentially ushering in a new era of regulatory philosophy focused on deregulation and industry growth.