Behnam, Gallagher join FINRA board in U.S. as oversight of crypto assets is strengthened

The Financial Industry Regulatory Authority (FINRA) has moved to strengthen its supervisory framework spanning both traditional finance and crypto assets by adding a large number of directors with experience in crypto-asset regulation. By bringing in former regulators and industry figures with derivatives and securities oversight backgrounds, the appointments are seen as a step to prepare for the growing integration of crypto assets into the legacy financial system.

According to a report by Cryptopolitan on the 7th (local time), FINRA newly appointed four people to its board, including former U.S. Commodity Futures Trading Commission (CFTC) Chair Rostin “Russ” Behnam and Robinhood Markets Chief Legal Officer (CLO) Dan Gallagher. Also joining were former Piper Sandler Chief Financial Officer (CFO) Tim Carter and Heather Traeger, legal counsel for the Texas Teacher Retirement System (TRS).

Behnam served as CFTC chair from 2021 through January 2025, overseeing the crypto-asset futures market, and has publicly emphasized the need for a federal-level regulatory framework for digital assets. During his tenure at the CFTC, he cited the digital-asset market’s growth to about $3.5 trillion and said proactive oversight is needed to protect investors and establish market order. FINRA expects Behnam’s background to bolster its supervisory capabilities where crypto-asset and securities regulation intersect.

Gallagher oversees compliance and corporate legal affairs at Robinhood and previously served as a commissioner at the U.S. Securities and Exchange Commission (SEC) from 2011 to 2015. As a FINRA-regulated broker, Robinhood supports trading in crypto assets such as Bitcoin (BTC), Ethereum (ETH), and XRP (XRP). Cryptopolitan reported that Gallagher’s appointment could help shape supervisory standards that take into account both crypto innovation and regulatory compliance.

Carter, who has built experience in accounting, finance, and risk management within traditional finance, is viewed as a figure who can provide a balanced supervisory perspective as institutional investors broaden access to crypto assets. Traeger has prior SEC experience and has served as chair of FINRA’s National Adjudicatory Council, and as legal lead at a large public pension fund brings expertise in regulation and public accountability.

FINRA Chief Executive Officer (CEO) Robert Cook said of the appointments, “The new directors will strengthen FINRA’s supervisory capabilities through deep expertise and diverse perspectives.” FINRA Board Chair Scott Curtis also said, “The board’s composition reflects our commitment to effectively carrying out FINRA’s core mission of investor protection.” FINRA is currently run by a 22-member board, comprising 12 public governors and 10 industry governors.