A major revamp is about to change the US regulatory landscape, and all this will have a lot do with incoming President Donald Trump and his officer of choice to steer the future direction of the SEC.
Richard Farley, a seasoned partner at New York’s high-point law firm Kramer Levin Naftalis & Frankel, has made a name for himself on Wall Street with his gainful experience in high-stakes finance, especially in leveraged finance.
A Trump Handpick?
As a co-head of Kramer Levin’s Leveraged Finance Group, Farley has advised private credit firms on several complex issues that have propelled him as a top contender for the post of chair at the US Securities and Exchange Commission.
According to reports, Farley has been shortlisted by Donald Trump’s transition team to become the new SEC Chair in place of the outgoing incumbent, Gary Gensler.
Trump Eyes Richard Farley For SEC Chair Appointment
Word on the chain is Trump’s considering Richard Farley, a top Wall Street lawyer, for the role of leading the SEC.
With this replacement, we could see a shift from Gensler’s anti-crypto raids to a pro-crypto stance that… pic.twitter.com/YnDauyExhG
— Mario Nawfal’s Roundtable (@RoundtableSpace) November 8, 2024
Strong Political Ties And GOP Alignment
Farley’s candidacy has more going for it than his Wall Street background; he also comes with a significant amount of political connections. Farley’s wife, Chivacci “Chele” Farley, was once the finance chair for the New York City GOP and is an elected official who ran as a Republican, making the Farley family a conservative team.
While Farley himself was originally a Democrat, he has shifted his support recently to the GOP, another connection with Trump’s inner circle. The acquaintance with Robert F. Kennedy Jr., a determined Trump supporter and also a likely administration appointee, brings another layer to his political relations and increases the possibilities for the role in the SEC.
Shifting SEC Priorities And Crypto Stance
Trump’s administration said they would like to rebalance the mission of the SEC towards core consumer protection, further distancing from Gary Gensler, whose regulatory approach has been harsh on the industry, at least on matters about cryptocurrency.
Gensler was appointed by President Joe Biden in January 2021 and will serve until January 5, 2026, but the president can fire him early should there be just cause. Of course, the camp of Donald Trump showed a penchant for friends to cryptocurrency-friendly chairs for the SEC, being on the side of the relaxed standards of regulatory conditions in the crypto sphere.
Farley has made no public pronouncements about crypto, but, by all indications, the prospect of his taking over the helm has sparked interest on the part of those who want pro-crypto policies.
Other Candidates And Implications For Future SEC Leadership
Farley is among a handful of finalists for the position, each of whom would bring a particular flavor to the regulation of policy. Other commonly named candidates include Dan Gallagher, Chief Legal Officer at Robinhood and a former commissioner of the SEC; Chris Giancarlo, former chair of the Commodity Futures Trading Commission, who has been regarded as relatively friendly to digital assets; and Hester Peirce, the current commissioner of the SEC, who has advocated a crypto-friendly perspective for years.
The last SEC chair could, for sure, chart the course that the agency will take concerning regulating digital assets and has wide-reaching implications for the future of the industry.
Featured image from CNBC, chart from TradingView