Galaxy Digital's Mike Novogratz Is Pushing for a Pro-Crypto Leader for the US SEC

Galaxy Digital CEO Mike Novogratz thinks Hester Peirce and Robinhood's legal Chief Dan Gallagher are potential candidates to replace Gary Gensler

Galaxy Digital CEO Mike Novogratz has suggested potential candidates to replace Gary Gensler as the United States Securities and Exchange Commission (SEC) Chairman. Among the names mentioned are Hester Peirce, who may actively lobby for the position, and Robinhood’s legal Chief Dan Gallagher, who has been on the lips of many crypto leaders for a long time.

With the United States election result favoring Republican Presidential candidate Donald Trump, netizens have been discussing who will succeed Gensler. At last, Gensler may start counting his last days in office.

In the past, “Crypto Mom”, as Peirce is known, has voiced her displeasure about the SEC’s approach towards cryptocurrencies and exchanges. In particular, she criticized the SEC’s reliance on litigation as a primary enforcement strategy. According to her, litigation is not the most effective way to carry out regulations.

During a 2023 fireside discussion at the Blockchain Association Policy Summit in Washington, DC, she expressed concerns over the need for a clear strategy in the agency’s approach to enforcement actions in the crypto space. She also called for focusing on the core responsibilities without extending beyond what is legislatively mandated.

Like Novogratz, former SEC official John Reed Stark also sees Peirce as a good candidate for SEC Chair.

Before the elections, the only condition attached to Gallagher replacing Gensler was that Donald Trump emerged victorious in the US presidential election. To a large extent, Robinhood’s CLO has a friendly stance on digital assets. Also, the financial service provider has previously been a victim of the SEC’s tough rule on the crypto industry.

Gallagher has expressed his gratitude for the recognition he is currently receiving by being considered for the seat. Noteworthy, he has served in various capacities within the agency. Furthermore, he maintains that he remains fully committed to seeing the US at the forefront of financial innovation.

Whether Peirce or Gallagher, Novogratz does not think it matters. What is more important is the crypto open-mindedness of whoever takes over the delicate position. He does not see the possibility of Trump picking an anti-crypto leader for the agency.

In a plot twist, Vice President Kamala Harris was Novogratz’s preferred candidate before the election. His current sentiment suggests that he is pleased with Donald Trump winning the election. For instance, he mentioned that he is more optimistic about the crypto industry now that the US has a president who supports it.

Novogratz highlighted that the crypto sector’s future rests largely on the shoulders of major financial regulators, including the SEC, CFTC, and FDIC. Once these agencies can support the crypto industry, the Galaxy Digital executive foresees a remarkable trajectory in the burgeoning sector.

Other potential candidates for the SEC Chair role include CFTC heads J. Christopher Giancarlo, Paul Atkins, and Heath Tarbert.