The crypto community is responding with mixed feelings to reports that Wall Street attorney Richard Farley may be considered for the role of SEC Chair in Donald Trump’s administration. Farley, a partner at the law firm Levin Naftalis and Frankel, is being discussed as a potential replacement for current SEC Chair Gary Gensler, known for his stringent stance on cryptocurrency regulation.
Mixed Reactions from Crypto Advocates
Following the announcement of Trump as the 47th U.S. president on Nov. 6, speculation has surged about who might replace Gensler. Farley’s potential nomination has raised concerns due to his strong ties to traditional finance. Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, voiced skepticism on X (formerly Twitter), stating, “Farley would be one of the worst [choices]—he’s a Wall St banking lawyer.” Cochran believes that industry-friendly figures like former CFTC Chair Chris Giancarlo, also known as “Crypto Dad,” SEC Commissioner Hester Peirce, or Robinhood’s legal chief Dan Gallagher would be better choices for crypto-friendly policies.
Optimism for a Balanced Approach
In contrast, economist Timothy Peterson suggests that Farley’s expertise could support balanced crypto regulation. In a Nov. 8 post on X, Peterson highlighted Farley’s experience in traditional finance and suggested that his approach to regulation could promote innovation while maintaining market stability. “His perspectives on regulation emphasize the importance of balanced oversight to foster innovation,” Peterson explained, adding that this mindset could be extended to crypto regulation.
Pseudonymous crypto trader Adios King also took a positive view, commenting that although Farley hasn’t publicly taken a stance on crypto, his extensive experience in finance might indicate a “pragmatic approach” to the sector.
Alternative Candidates Gain Support
Alongside Farley, Trump’s transition team has reportedly shown interest in other candidates. According to Reuters, Dan Gallagher, currently Robinhood’s legal chief, is considered a frontrunner. Gallagher’s legal background and market experience are seen as more crypto-friendly, and he is viewed by some as better aligned with the crypto sector’s interests than Farley.
In addition, some crypto advocates are backing SEC Commissioner Mark Uyeda, known for his criticism of Gensler’s crypto policies. Recently, Uyeda described Gensler’s regulatory stance as a “disaster for the whole industry,” highlighting his skepticism of the SEC’s approach under Gensler’s leadership.
