Jay Clayton, the former SEC chair who initiated the lawsuit against Ripple, has been appointed by Trump as the new U.S. Attorney for the Southern District of New York (SDNY). While Clayton has promised to bring a more favorable stance towards cryptocurrency enforcement in his new position, his past actions raise significant concerns.
JAY CLAYTON AND THE RIPPLE LAWSUIT
As Trump aims to implement more amicable crypto regulations, he’s directed prosecutors to halt actions against the industry. In light of this, he has appointed Jay Clayton to be the Acting U.S. Attorney following the role he initially assumed in November.
However, there is a notable complication—Clayton was the one who filed the SEC’s lawsuit against Ripple. This case has been deemed a pivotal moment in the regulatory landscape under Gary Gensler’s leadership, but it was Clayton who initiated the proceedings. His tenure as SEC Chair lasted from 2017 until 2020, during which he resigned shortly after filing the Ripple suit on December 22, indicating the urgency of his intentions.
Fast forward to today, and Clayton is now positioned to affect change in government crypto policies. After Trump appointed him last year, spokespersons announced plans to seemingly terminate rigorous enforcement actions against crypto entities.
This year, Clayton has appeared in interviews criticizing the current administration’s crackdown measures, raising eyebrows, especially with Ripple’s CEO Brad Garlinghouse expressing his frustration publicly.
UNCERTAIN FUTURE FOR CONFIRMATION
Although no official comments have emerged from Ripple regarding Clayton’s new role, the nomination process could lead to friction within the industry. Typically, the Senate confirmation process can be quite challenging.
Despite having nominated Paul Atkins for the SEC Chair position nearly five months ago, Trump has taken a different approach with Clayton. Local news reports confirm Clayton’s new role as the Acting U.S. Attorney, with the expectation that he will secure a permanent spot.
Senate Minority Leader Chuck Schumer has openly declared his intentions to block Clayton’s confirmation, asserting that Clayton lacks a commitment to the law.
However, Clayton’s current status as Acting U.S. Attorney doesn’t require Senate approval, and he might not need confirmation at all. If the Senate fails to act within 120 days, SDNY judges are authorized to appoint him up until a nominee is approved.
This scenario illustrates the growing influence cryptocurrency holds in political realms. Clayton, who was once responsible for launching the Ripple lawsuit, now has the opportunity to influence future enforcement actions positively. Yet, this situation leads to broader questions: how much trust should the industry place in those who previously opposed it, and which allies might turn on the crypto movement in the future?
