Countdown to the resignation of US SEC Chairman Gensler! Reports say the new head may be a law firm partner

According to informed sources, Richard Farley, a partner at Kramer Levin Naftalis & Frankel, and Norm Champ, a partner at Kirkland & Ellis, are expected to be candidates to succeed Gary Gensler as chairman of the U.S. Securities and Exchange Commission (SEC). In addition, media reports indicate that Dan Gallagher, chief legal officer of Robinhood, current SEC commissioner Mark Uyeda, and former Commodity Futures Trading Commission (CFTC) chairman Heath Tarbert are also among the candidates. Other sources have told the media that former SEC commissioner Paul Atkins and Willkie Farr & Gallagher partner Robert Stebbins are also being considered. Reuters previously reported that Atkins had 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 Robinhood's chief legal officer Gallagher is a popular choice among cryptocurrency industry executives, who have donated millions of dollars to Trump's Republican campaign. Currently, Gallagher is seen as the most likely to be appointed, but discussions are still ongoing. Trump's press secretary Karoline Leavitt said in a statement that "President-elect Trump will soon begin deciding who will serve in his second administration. These decisions will be announced when made." Media reports indicate that members of the incoming President Trump's transition team and other advisers have begun meeting with potential candidates since the election on Tuesday. Discussions are still ongoing and a decision may not be made for several weeks. Regardless of who is chosen, there will be a relaxation of regulations Analysts believe that whoever Trump chooses as the next SEC head is likely to review the major rules put in place during Gensler's tenure and seek to reduce regulation in the digital currency industry to align with securities laws. Gensler was nominated by current President Biden in February 2021 and sworn in two months later. Gensler's term is set to end in 2026, but he has indicated he will step down when the new Republican administration takes office. Trump had promised during his campaign to promote the development of cryptocurrencies and reform the SEC to attract crypto industry funds. However, after taking office, Gensler has taken a harsh stance against the industry, saying it has disregarded SEC rules. Reuters previously reported that crypto companies have been pushing for the selection of an SEC chairman who can abolish burdensome regulatory policies. Many analysts believe that Republican SEC commissioner and crypto supporter Hester Peirce is a strong candidate for SEC chairman, but sources have told the media that she has told some people she does not want the position. Although Trump has not made many comments on financial policy this time, he has repeatedly promised to cut "burdensome" regulations. Bankers and lobbyists expect the Trump administration to repeal or significantly weaken the Basel Accords' requirements for large banks to hold higher capital ratios, as well as reduce restrictions on mergers and acquisitions. The FDIC and the Federal Reserve will also be reorganized In addition, Trump can dismiss Acting Comptroller of the Currency Michael Hsu on his first day in office, but reorganizing the top regulatory positions at the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) board may take several months. Among the candidates the Trump team is considering for senior banking regulatory positions is Federal Reserve Governor Michelle Bowman. She has criticized the capital adequacy increases led by Federal Reserve Vice Chairman Michael Barr and advocated for relaxing bank rules and regulations. Sources told the media that Barr has stated he intends to serve out his term as vice chairman until 2026, but it is unclear whether Trump will attempt to remove him early. Sources also revealed that Travis Hill, the Republican vice chairman of the FDIC board and former Senate Banking Committee counsel, is also on the list of candidates for senior banking regulatory positions. Hill also opposes the Basel rules. Additionally, Jonathan Gould, a partner at the Jones Day law firm who served as senior deputy comptroller and chief counsel at the Office of the Comptroller of the Currency from 2018 to 2021, is also being considered.