Dan Gallagher Exits SEC Race, Paul Atkins Becomes Frontrunner

• Dan Gallagher withdraws, shifting SEC chair focus to Paul Atkins with 60% betting odds.
• Paul Atkins’ free-market stance fuels optimism for balanced crypto regulations.
• Ripple CEO criticizes Stebbins, highlighting industry concerns over SEC enforcement.

Dan Gallagher, Robinhood’s Chief Legal Officer, has withdrawn from consideration for the U.S. Securities and Exchange Commission (SEC) chair position. Once regarded as the top contender to replace Gary Gensler, Gallagher’s decision has redirected attention to other potential nominees, generating significant discussion in financial and cryptocurrency sectors.

Betting Odds Shift Toward Paul Atkins

Gallagher previously led betting markets, with Kalshi placing his chances at 61%. However, his odds declined rapidly, leaving the field open for other candidates.

Read also: SEC Scrutinizes Robinhood as Trump Eyes Dan Gallagher for Top Role

Now, Paul Atkins, CEO of Patomak Global Partners and a former SEC commissioner, leads the race. Markets have adjusted to reflect a 60% probability of Atkins taking the role, underscoring the rapid shift in expectations.

Atkins Gains Favor as a Reformist

Atkins is gaining traction among policymakers and industry observers due to his regulatory philosophy. Known for advocating free markets and opposing excessive regulation, Atkins represents a stark contrast to the current enforcement-heavy approach of Gary Gensler. 

Many in the cryptocurrency sector view Atkins as a promising candidate who could adopt a more cautious approach to crypto regulation. His potential leadership could foster a more balanced framework for digital asset oversight.

His tenure as an SEC commissioner and expertise in navigating regulatory complexities position him as a strong candidate. His leadership could signal a potential shift in SEC policies, particularly around Bitcoin ETFs and cryptocurrency enforcement, areas that have fueled controversy under Gensler.

Other Candidates Face Criticism

Not all contenders enjoy similar support. Robert Stebbins, for instance, has drawn sharp criticism from Ripple CEO Brad Garlinghouse, who called his potential nomination “unacceptable.”

The crypto industry remains skeptical of Stebbins due to his alignment with current SEC enforcement policies. Meanwhile, SEC Commissioner Jaime Lizárraga, another contender, has faced backlash for opposing Bitcoin ETFs and is expected to step down alongside Gensler by January.