FINRA Appoints Four Crypto-Friendly Board Members Including Former CFTC Chair Behnam

Source: CryptoNewsNet Original Title: FINRA appoints four crypto policy hitters, including Rostin Behnam and Dan Gallagher, to its board Original Link: The Financial Industry Regulatory Authority (FINRA) has appointed four crypto-friendly figures to its board to strengthen oversight. The newly appointed crypto policy experts bring experience across financial services, regulation, industry leadership, and public pension management.

FINRA oversees investor protection and market integrity for broker-dealers handling everything from stocks to crypto trades. The board has appointed Rostin ‘Russ’ Behnam, Tim Carter, Dan Gallagher, and Heather Traeger to strengthen its oversight as crypto continues to form ties with traditional financial markets.

Former CFTC Head Behnam Brings Crypto Expertise

Behnam chaired the U.S. Commodity Futures Trading Commission (CFTC) between 2021 and January 2025. During his tenure, Behnam oversaw crypto futures and advocated for comprehensive digital asset regulations. He 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 mainstream adoption of blockchain, tokenization, and DeFi ecosystems.

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. His expertise could help FINRA navigate areas where crypto connects with securities.

Additional Board Appointments

Dan Gallagher brings expertise as Chief Legal Officer in Compliance and Corporate Affairs from a major FINRA-regulated broker enabling investors and retail traders access to the crypto ecosystem. Gallagher also served as SEC Commissioner between 2011 and 2015, offering blended expertise in crypto innovation and regulatory compliance.

Tim Carter, former CFO at investment bank Piper Sandler Companies, brings expertise in financial accounting, treasury, market and credit risk, and financial planning. His background in financial accounting could ensure balanced oversight for institutional players eyeing crypto allocation across BTC ETFs and other crypto derivatives.

Heather Traeger, General Counsel at the Teacher Retirement System of Texas, brings expertise from previous roles at the SEC and as a partner at O’Melveny & Myers. She previously served at FINRA as Chair of the National Adjudicatory Council.

Institutional Adoption Accelerates

The crypto ecosystem’s power is rapidly shifting from retail speculation towards institutional flows. The current environment has prompted investors to seek ways to participate in crypto with reduced exposure to constant price fluctuations, suggesting a move toward a more regulated ecosystem dominated by regulated institutions.

FINRA CEO Robert Cook welcomed the four board members, stating their appointments will strengthen the board’s ability to provide strategic oversight and guidance in the complex financial landscape. The 22-member Board of Governors includes 12 public members and 10 appointed from the industry.