FINRA Shakes Up Crypto Regulation: Appoints Four Heavyweights Including Rostin Behnam and Dan Gallagher to Board

Wall Street's self-regulatory watchdog just loaded its board with crypto firepower.

Four new directors with deep digital asset expertise—including CFTC Chair Rostin Behnam and former SEC Commissioner Dan Gallagher—are now steering FINRA's policy ship. This isn't a casual nod to innovation; it's a strategic move signaling that traditional finance is finally getting serious about the rules of the crypto game.

Why This Board Shuffle Matters

For years, crypto operated in a regulatory gray zone—too fast for old guard watchdogs, too complex for quick fixes. FINRA's move cuts through the ambiguity. By placing seasoned regulators who've wrestled with digital assets directly into governance roles, the industry gets a clearer rulebook. Expect sharper guidance on custody, trading, and compliance that could finally bridge the gap between DeFi and traditional markets.

The Regulatory Domino Effect

When FINRA moves, the entire U.S. financial ecosystem feels it. Broker-dealers, trading platforms, and even institutional investors now have a direct line to policymakers who understand blockchain's potential—and its pitfalls. This could accelerate mainstream adoption, as clearer rules often pave the way for bigger money to flow in. Of course, some will grumble about overreach—because what's finance without a little healthy cynicism toward the rulemakers?

One thing's certain: the era of regulatory guesswork is winding down. With these appointments, FINRA isn't just watching crypto evolve—it's placing its own pieces on the board.

Former CFTC head Behnam brings crypto expertise to FINRA

According to FINRA’s press release, the board appointed Behnam, who chaired the U.S. Commodity Futures Trading Commission (CFTC) between 2021 and January 2025. During his tenure at the CFTC, Behnam oversaw crypto futures and advocated for comprehensive digital asset regulations. Based on his first speech as chair at the CFTC, Behnam highlighted the scale of the $3.5 trillion digital asset market and vowed to support proactive federal oversight to protect investors, ensure market integrity, curb manipulation, and enable the mainstream adoption of blockchain, tokenization, and DeFi ecosystems. 

Rostin Behnam cracked down on fraud while advocating for clearer frameworks across the digital market ecosystem. Currently, he serves as a distinguished member at Georgetown University’s Psaros Center for Financial Markets and Policy. Behnams’ expertise could help FINRA navigate areas where crypto connects with securities. 

Dan Gallagher, on the other hand, brings expertise as a Chief Legal Officer in Compliance and Corporate Affairs from Robinhood Markets. Robinhood is a FINRA-regulated broker enabling investors and retail traders a gateway to the crypto ecosystem. The platform offers trading in several crypto assets, including BTC, ETH, and XRP. Gallagher has also served as the SEC Commissioner between 2011 and 2015, a role that offers him a blended expertise in crypto innovation and regulatory compliance. Gallagher may help FINRA to push for standards that make crypto brokers such as Robinhood robust and user-friendly in order to accelerate global crypto adoption. 

FINRA also appointed Tim Carter, former CFO at investment bank and institutional securities firm Piper Sandler Companies. Carter brings in expertise in financial accounting, treasury, market and credit risk, investor relations, and financial planning. While he is not a direct crypto player, his background in financial accounting could ensure a balanced oversight for institutional players eyeing crypto allocation across BTC ETFs and other crypto derivatives. 

Cook shows strong conviction in the new members to strengthen oversight

Heather Traeger, the General Counsel at the Teacher Retirement System of Texas, one of the largest public pensions in the U.S., brings expertise from her previous roles at the SEC and as a partner at O’Melveny & Myers. She also previously served at FINRA as Chair of the National Adjudicatory Council. Such a blend of expertise could prove invaluable in ensuring fair markets as digital assets mature from retail speculation towards regulated institutional flows. 

The crypto ecosystem’s power is rapidly shifting from retail speculation towards institutional flows. According to a recent Cryptopolitan report, the current environment has prompted investors to ask whether there is a way to participate in crypto without being exposed to constant price fluctuations. The answer appears to suggest a more regulated ecosystem dominated by regulated institutions. 

FINRA CEO Robert Cook welcomed the four board members, who bring a strong conviction and DEEP expertise, along with diverse perspectives, to FINRA’s regulatory approach as it meets the current, evolving needs of investors and the market. Cook said that the appointments will strengthen the board’s ability to provide strategic oversight and guidance in the current complex financial landscape. Scott Curtis, FINRA’s Board Chair, said that the four distinguished leaders reflect the firm’s commitment to maintaining its investor protection mission effectively. 

FINRA is led by a 22-member Board of Governors, 12 of whom are designated as public members and 10 are appointed from the industry. 

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