Schwab Expects 'Activist' SEC Under Gensler; Senate Sets Confirmation Vote Date

The SEC's Regulation Best Interest, however, was not discussed during the hearing.

However, Gilkerson noted that "enhancing the standard of care for investors, especially broker-dealers," was top of mind during Gensler's time as chairman of the Maryland Financial Consumer Protection Commission.

As to the GameStop Reddit short squeeze, any reform initiated by Gensler "would focus on rapidly moving to T+1 settlement, better surveillance on potential market manipulation through social media and better disclosure for short sellers. And probably a focus on gamification of investing," Gilkerson opined.

"From the perspective of RIAs, I think all of those things would be positive for both them and their clients."

Payment for Order Flow

Gensler's focus may also likely turn to "the common practice of payment for order flow broker-dealers receive, and an implication that eliminating online commissions for retail investors has been bad, because broker-dealers collect payment for order flow allegedly at the expense of best execution for client orders."

At Schwab and TD Ameritrade, "we can say that execution quality is a top priority with or without payment for order flow. Zero-dollar commissions have been good for investors," Gilkerson said.

As a result of GameStop and the questioning of Gensler at the Senate Banking hearing, "I would expect that Gensler, as chair of the SEC, will undertake and oversee the study of the [payment for order flow] issue, and that could lead to a roundtable, request for comments, proposed rulemaking. That could be a process through the next year or so and Schwab will be very active throughout the process advocating what's best for advisors and their clients."