What Will Trump 2.0 Mean for the SEC?

What to Expect From the SEC Under Trump 2.0

“The SEC under Chair Gensler has been aggressive in terms of really putting in prospective requirements in emerging substance areas like cybersecurity, ESG and also AI,” Lee said. She expects that, under the Trump administration, the SEC will likely pull back on rulemaking and adopt a less stringent stance on enforcement, particularly when it comes to pushing the bounds of existing rules.

Trump already has vowed to fire Gensler “on day one” and appoint a replacement. One credible successor is Robinhood Chief Legal, Compliance and Corporate Affairs Officer Dan Gallagher, who was an SEC commissioner from 2011 to 2015, according to people familiar with the discussions.

Also well-respected in the legal community and a potential successor are Hester Pierce, who has been a Republican GOP commissioner since 2017 and is known for her incisive dissents. Chris Giancarlo, a former chair of the Commodity Futures Trading Commission, who is now a partner at Willkie Farr & Gallagher, is another contender.

Legal observers say that, under a new chair, the SEC likely will abandon ESG rulemaking and will stop trying to implement its new rule requiring public companies to disclose greenhouse gas emissions. That rule is on hold amid challenges by industry groups and Republican-run states.

Novel legal theories also likely will be out, including its controversial push to apply internal accounting controls to cybersecurity, legal observers said.

Securities Docket Announces ‘Enforcement Elite’ for 2024

On Wednesday, November 6, 2024, Securities Docket announced its “Enforcement Elite” for 2024 — our list of the best securities enforcement defense lawyers in the business. Bruce Carton, Editor of Securities Docket, announced the names of this year’s Enforcement Elite at the conclusion of Securities Enforcement Forum D.C. 2024, which was held at the Mayflower Hotel in Washington, D.C.

The 140 lawyers selected for the Enforcement Elite for 2024 are from many of the top law firms in the world and have been key players in some of the most significant SEC enforcement matters over the past few decades.

“Securities Docket tracks the securities enforcement field on a daily basis. After taking nominations and conducting significant research, we created this list to honor the top practitioners in this highly-specialized area of law — the lawyers you would turn to if you, your company or a family member were faced with an important SEC enforcement matter,” Carton said. “I really believe that this year’s Enforcement Elite is a group of true all-stars who are worthy of this special and unique recognition.”

Here’s How Quickly Gary Gensler Could Lose His SEC Chair Gig Under Trump

While he can’t force Gensler to step down as a commissioner at the U.S. Securities and Exchange Commission, he can name a new interim SEC chair as soon as he’s inaugurated on Jan. 20. He can also nominate a new commissioner to the Senate, which has to confirm the pick.

Given Republicans have retaken control of the Senate after flipping several seats during Tuesday’s presidential election, Trump’s pick would have a good chance of making it through the vote and a new chair could take office within a few months.

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Knowing Trump’s plan for him, Gensler could also choose to resign before the new President takes office in January. If that were to happen, an interim chair would be appointed by President Joe Biden from the remaining Democratic commissioners until Trump is inaugurated, before Trump names his interim after taking office.

Whoever Trump nominates would probably replace Commissioner Caroline Crenshaw, who is currently up for renomination. If Gensler resigns from the commission entirely, he’ll also need to be replaced through the nomination and confirmation process.

Robinhood attorney, Republican regulators being considered for Trump financial agency short list

Among those being considered for chair of the Securities and Exchange Commission is Dan Gallagher, a Republican SEC commissioner from 2011 to 2015 who is currently chief legal and compliance officer at Robinhood, the people said.

Gallagher, who is a popular pick among cryptocurrency executives who donated millions of dollars to Donald Trump’s Republican campaign, is the front-runner at this point, although the discussions are fluid, two of the people said.

Also in the mix for SEC chair is Paul Atkins, another former Republican SEC commissioner and CEO of consultancy Patomak Global Partners. Atkins served on Trump’s transition team in 2016, when he was also a contender for the SEC chair role, Reuters reported at the time.

Robert Stebbins, a partner at law firm Willkie Farr & Gallagher who served as SEC general counsel during Trump’s first administration, is also being discussed for the SEC short list.

Binance Billionaire ‘CZ’ Changpeng Zhao Plots Life After Prison

The other founder to match Zhao’s meteoric rise was his fiercest rival and social-media sparring partner, FTX’s Sam Bankman-Fried. Bankman-Fried, who is serving 25 years in prison for fraud, partially blamed Zhao for accelerating the bank run that led to FTX’s blow up in late 2022. Both men ended up in prison but Zhao says the common comparison between their cases is misplaced.

“That’s like comparing somebody who’s stealing money versus somebody who failed to register a company,” he said.