Mike Novogratz Points to ‘Crypto Mom’ Hester Pierce, Robinhood CLO as Potential SEC Chair Contenders

Galaxy Digital CEO Mike Novogratz named Republican SEC Commissioner Hester Peirce and Robinhood’s legal chief Dan Gallagher as potential candidates for SEC Chair after Donald Trump’s return to office.

“I know [Peirce is] probably throwing her name in the hat,” he told CNBC on Wednesday. “The Chief Legal Officer at Robinhood has been thrown in. I’m not sure the exact person matters, as long as they’re very open-minded to this industry.”

He added that he believes Trump would not pick someone who opposes the industry.

Novogratz preferred VP Kamala Harris over Trump during the election. However, he appeared satisfied with Trump’s win.

In response to the Republican candidate’s victory, he told CNBC that he “couldn’t be more optimistic” about the crypto industry now that the US has a president dedicated to supporting it.

JUST IN: 🇺🇸 Mike Novogratz says after Trump's win, he sees a "substantial shift in the energy" of the crypto industry.

This will bring “hundreds of billions” into the ecosystem 🙌 pic.twitter.com/HAi4Q2MToC

— Bitcoin Magazine (@BitcoinMagazine) November 6, 2024

Trump Victory Sparks Optimism for Major Crypto Policy Changes

The crypto exec pointed out that the industry’s future in the country depends on major financial regulators. These include the OCC, FDIC and SEC. Having leaders with a supportive and progressive approach to crypto could shift the industry’s trajectory significantly, he suggested.

Trump’s win, specifically, marks a turning point for the US crypto industry. He is expected to push for regulatory reform, enhance domestic mining and create a national Bitcoin reserve, transforming the digital asset landscape.

Novogratz stated that having policies such as allowing banks to hold crypto on their balance sheets would lead to a significant capital influx, drawing in billions, possibly even hundreds of billions, into the crypto market.

Peirce’s Criticism and Gallagher’s Advocacy Shape Their Bids for SEC Chair

The two potential SEC contenders Novogratz identified bring considerable regulatory experience to the table.

Peirce has openly criticized the SEC, under the Biden administration, for its strict approach to crypto regulation. She argues that the agency has failed in its duties and should provide clearer guidance to encourage innovation and growth in the industry.

She has also shown concern over the SEC’s focus on enforcement rather than proactive regulation. Further, she has argued that treating crypto like traditional securities could stifle innovation and create unnecessary barriers.

Meanwhile, Dan Gallagher, chief legal officer at Robinhood, has strongly supported a pro-business regulatory approach, aligning with Trump’s call for reduced regulation. At Robinhood, he has contributed to discussions on retail trading and crypto regulation, making him a compelling candidate for potential SEC policy reform.

Additionally, Gallagher’s experience as an SEC Commissioner from 2011 to 2015 gives him relevant expertise in securities regulation.

Last month, Politico reported that Gallagher has a strong reputation within Republican circles, and that he is seen as a leading contender for SEC Chair. One former senior SEC official reportedly called him “a natural choice” for the role.