A major revamp is about to change the regulatory landscape in the United States, and it will all have a lot to do with incoming President Donald Trump and the official he chooses to guide the future direction of the Securities and Exchange Commission.
richard farley, He is an experienced partner at the prestigious New York law firm Cramer Levin Naftalis & Frankel, and has made a name for himself on Wall Street with his lucrative experience in high-risk finance, especially leveraged finance.
Trump’s choice?
As co-chair of Cramer Levin’s leveraged finance group, Farley advised private credit companies on many of the complex issues that led him to become a director. The most prominent contenders for the presidency In the US Securities and Exchange Commission.
According to reports, Farley has been shortlisted by Donald Trump’s transition team to become the new head of the SEC in place of the outgoing incumbent, Gary Gensler.
Trump looks to Richard Farley for appointment as head of the Securities and Exchange Commission
Trump is rumored to be considering Richard Farley, a top Wall Street lawyer, to take over the role of leading the Securities and Exchange Commission.
With this replacement, we could see a shift from Gensler’s anti-crypto raids to a pro-crypto stance… pic.twitter.com/YnDauyExhG
— Roundtable Mario Novel (@RoundtableSpace) November 8, 2024
Strong political ties and alignment with the Republican Party
Farley’s nomination has more influence than his background on Wall Street. It also comes with a great deal of political connections. Farley’s wife, Chivachi “Shelly” Farley, was once the finance chair of the New York City Republican Party and is an elected official who ran as a Republican, making the Farleys a conservative team.
While Farley himself was originally a Democrat, he has recently switched his support to the Republican Party, another connection to Trump’s inner circle. Getting to know Robert F. Kennedy Jr., a staunch Trump supporter who is also likely to be appointed by the administration, adds another layer to his political connections and increases the odds of a role at the Securities and Exchange Commission.
Changing SEC priorities and stance on cryptocurrencies
The Trump administration has said it wants to rebalance the SEC’s mission toward basic consumer protections, and move further away from consumer protections. Gary Genslerwhose regulatory approach has been harsh on the industry, at least regarding crypto-related matters.
Gensler was appointed by President Joe Biden in January 2021 and will serve until January 5, 2026, but the president can fire him early if there is just cause. Of course, Donald Trump’s camp has shown a penchant for friends in the crypto-friendly SEC chairs, as he has been on the side of loosening regulatory standards in the crypto space.
Farley has not made any public statements about cryptocurrencies, but, by all indications, the prospect of him taking over the leadership has sparked interest from those who want pro-crypto policies.
Other nominees and implications for future SEC leadership
Farley is among a handful of finalists for the position, each of whom will bring a special flavor to organizing politics. Among other well-known candidates dan gallagher, Chief Legal Officer at Robinhood and former Commissioner of the Securities and Exchange Commission; Chris Giancarlo, the former head of the Commodity Futures Trading Commission, who is seen as relatively friendly to digital assets; And Hester Peirce, the current commissioner of the Securities and Exchange Commission, who has championed a crypto-friendly perspective for years.
The SEC’s latest chairman could certainly chart the course the agency will take with regard to digital asset regulation and will have wide-ranging implications for the future of the industry.
Featured image from CNBC, chart from TradingView