Countdown to the resignation of SEC Chairman Gensler! Reports suggest the new candidate may be a law firm partner

Informed sources revealed to the media that Richard Farley, a partner at Kramer Levin Naftalis & Frankel, and Norm Champ, a partner at Kirkland & Ellis, are candidates to replace Gary Gensler as the chairman of the U.S. Securities and Exchange Commission (SEC). Additionally, 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, are also being considered. According to previous reports by Reuters, Atkins served on the Trump transition team in 2016 and was a strong contender for the SEC chairman position that year. Two informed sources told the media that Gallagher, Robinhood's Chief Legal Officer, is a popular candidate among executives in the cryptocurrency industry, who have donated millions of dollars to Trump's Republican campaign. Currently, Gallagher has the highest likelihood of being appointed, but discussions are still 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 outlets reported that members of President-elect Trump's transition team and other advisors have begun talks with potential candidates following the election on Tuesday. Discussions are ongoing, and it may take weeks to select a candidate. Whoever it is, regulation will be relaxed Analysts believe that regardless of Trump's choice, the next SEC head may review the major rules established during Gensler's tenure and seek to reduce regulation in the cryptocurrency industry to align 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 stated he will step down when a new Republican administration takes office. During his campaign, Trump promised to promote the development of cryptocurrencies and reform the SEC to attract funds from the crypto industry. However, Gensler has taken a tough stance on the industry since taking office, stating that it has ignored SEC regulations. Reuters previously reported that cryptocurrency companies have been pushing for the election of an SEC chairman who can abolish cumbersome regulatory policies. Many analysts believe that Republican SEC Commissioner and cryptocurrency supporter Hester Peirce is a strong candidate for SEC chairman, but sources have informed the media that she has told some people she does not wish to hold the position. Although Trump has made few statements on financial policy this time, he has repeatedly promised to cut "heavy" regulations. Bankers and lobbyists expect the Trump administration to repeal or significantly weaken the Basel Accord, which requires large banks to increase their capital adequacy ratios, as well as reduce restrictions on mergers and acquisitions FDIC and the Federal Reserve Will Also Be Restructured In addition, Trump could remove Acting Comptroller of the Currency Michael Hsu from his position on his first day in office, but restructuring the top regulatory positions at the Federal Reserve and the board of the Federal Deposit Insurance Corporation (FDIC) may take months. Among the candidates being considered by Trump's team for senior banking regulatory positions is Federal Reserve Governor Michelle Bowman. She has criticized the capital adequacy increases led by Vice Chair Michael Barr, who is responsible for regulation, and has advocated for loosening bank rules and regulations. Sources told the media that Barr has indicated he intends to serve out his term as Vice Chair, which ends in 2026, and it is currently unclear whether Trump will attempt to remove Barr from his position early. Sources also revealed to the media that Travis Hill, the Republican Vice Chair of the FDIC board and a former lawyer for the Senate Banking Committee, is also on the list of candidates for senior banking regulatory positions. Hill has also opposed the Basel rules. Additionally, Jonathan Gould, a partner at Jones Day law firm who served as Senior Deputy Comptroller and Chief Counsel from 2018 to 2021, is also under consideration