According to CNBC, Dan Gallagher, chief legal officer at Robinhood, is not going to spearhead the U.S. Securities and Exchange Commission. 

Gallagher was the favorite of betting markets. As reported by U.Today, he had a 61% of becoming the next SEC head, according to bettors on Kalshi. However, his nomination chances sharply dwindled. 

Now, Paul Atkins, CEO of Patomak Global Partners, has emerged as the next clear frontrunner. He now has roughly a 60% chance of becoming the next SEC boss, according to Kalshi users. 

On Thursday, Fox Business reporter Charles Gasparino revealed that Atkins was "in the led position" to spearhead the agency, citing an anonymous source familiar with the matter. 

Former SEC official John Reed Stark recently opined that Atkins would be "an amazing choice." Stark predicted that Atkins, a former SEC commissioner, would reverse course on crypto enforcement efforts in a cautious and thoughtful manner. "As I recall, Paul favors free markets and hates over-regulation – which should be a net positive for the cryptoverse," he said.

The candidacy of Robert Stebbins, former General Counsel for the Securities and Exchange Commission (SEC), recently attracted a lot of criticism within the crypto industry, with Ripple CEO Brad Garlinghouse saying that such a choice would be "unconscionable."

As reported by U.Today, SEC Chair Gary Gensler officially confirmed that he is going to leave the agency on Jan. 20. 

SEC Commissioner Jaime Lizárraga, who voted against approving various Bitcoin ETFs, is also expected to step down from the agency in January.