SEC Commissioner To Resign; Dan Gallagher Exits Race, Who Will Be The Next SEC Chair?

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After Gary Gensler’s exit news on January 20 next year, another Democratic commissioner on the Securities and Exchange Commission is all set to leave the US SEC.

Commissioner Jaime Lizárraga To Exit

As per a recent filing, Commissioner Jaime Lizárraga will officially resign from the US SEC by January 17, which could give Republicans a head start in redirecting the regulator’s policies, including on cryptocurrency, which would otherwise be delayed. He cited his wife’s battle with breast cancer as the reason for stepping down and emphasized the need to prioritize his family during this critical time.

Notably, at this point, Caroline Crenshaw will be the sole Democrat on the five-member commission going into 2025. With her term already expired, putting her into an extension can last as long as about 18 months. The two remaining Republican members are Hester Peirce and Mark Uyeda.

With the exit news of both Gary Gensler and Jaime Lizárraga, the speculations around who could be the next SEC Chair have been intensified. Some names under consideration include Robert Stebbins, Paul Atkins; and Teresa Goody Guillén. 

Dan Gallagher Out Of The Race

Notably, Robinhood’s CLO, Dan Gallagher was leading in the race for the next SEC Chair. However, according to CBDC , he recently shared that he does not wish to be considered for this position, although he added that it’s an honor to have his name “in the mix.”

“I am committed to Robinhood and our millions of customers who represent the new generation of retail investors,” Gallagher said. He also said he was excited to work with the incoming Trump administration and next SEC chair “to promote innovation and provide more opportunity for retail investors.”

Notably, Gallagher is not the only SEC contender to recently remove their name from the mix. Trump’s former CFTC chair, Chris Giancarlo, widely known as Crypto Dad, also recently shared on X that he is not interested in cleaning up a “Gary Gensler mess” once again. “Rumors that I’m interested in some crypto role [at the] US Treasury are also wrong,“ he added.

As for reports that I’m in mix to run @SECGov, I’ve made clear that I’ve already cleaned up earlier Gary Gensler mess @CFTC and don’t want to have do it again. DC rumors that I’m interested in some #crypto role @USTreasury are also wrong.

— Chris Giancarlo (@giancarloMKTS) November 14, 2024 A Lot Of Work Needs To Be Done’ Says Mark Uyeda

Mark Uyeda, a current SEC commissioner, has also been pitched as a strong candidate to replace Gensler.

“One of the other very important things we can do is create safe harbors and regulatory sandboxes to allow that innovation to occur. And finally,” he added, “we need to work with the Congress, the White House and other federal regulatory agencies to make sure we have a cohesive and comprehensive approach to crypto,” he noted as per a latest report from Fox Business. 

Uyeda noted that it’s ultimately a decision for the president to make on who gets the leading seat. However, he noted that- 

“What I can tell you is that whoever steps in that job, there is a lot of work that needs to be done to address some of the regulatory excesses, not only at the FCC, but at other administrative agencies. There are a lot of new rules and regulations that were rolled out. There are a lot of unintended consequences, many of which will need to be addressed.”