A change at the top of the Securities and Exchange Commission could mean new changes for the financial industry.

SEC head Mary Schapiro steps down next month, and Elisse Walter, a fellow commissioner and confidante of Schapiro, will replace her. The president announced the appointment on Monday.

Neil Barofsky, author of the book Bailout,said the new makeup of the SEC may be problematic, because, until President Obama announces Walter's replacement, it splits the commission into two Democrats, and two Republicans. "That really sets the stage for more gridlock on the commission level," he said.

He thinks the SEC will have a lot to deal with in the coming year, and willl need to be more aggressive to effect financial reforms.

“The purpose of the SEC and why we have these laws and rules is not just to collect money, but to create a significant amount of pain so it’s no longer profitable to break the law or violate the rules,” he said.

He added that the agency needs to move forward on enacting industry reforms under the Dodd-Frank Act, like new rules for derivatives.

Barofsky made his comments on WNYC’s Brian Lehrer Show Tuesday. Listen to the full segment here.