Jay Clayton, chosen by Trump as the next U.S. Attorney for the SDNY, initially filed the SEC lawsuit against Ripple. Clayton promised to end cryptocurrency crackdowns at SDNY but personally initiated one of the most notorious incidents.
Trump is also planning to use a procedural loophole to avoid a complex confirmation process, which Senator Chuck Schumer has sworn to block. This incident raises questions about the quality of cryptocurrency's new political allies.
Jay Clayton and the Ripple Lawsuit
President Trump swore to issue more crypto-friendly regulations, and part of that was directing prosecutors to end enforcement actions.
He initially chose Jay Clayton for this role in November, and in fact, he has now become the Acting Attorney. The only concern is that Jay Clayton originally filed the SEC lawsuit against Ripple.
The SEC vs Ripple case is considered a typical action of the Gensler era, but in reality, Clayton initiated the lawsuit. Clayton was SEC Chairman from 2017 to 2020 and resigned more than six months before the end of his term.
He filed the SEC lawsuit on 12/22 and resigned the very next day, which the company called a "farewell blow."
A few years later, Clayton stands on the other side of government cryptocurrency crackdowns. When Trump first chose him for this role last November, a spokesperson declared that the office would cease cryptocurrency enforcement actions.
In 2023, Clayton appeared in television interviews criticizing Gensler's crackdowns, which angered Ripple's CEO, Brad Garlinghouse.
Further Controversy in the Confirmation Process
Today, no Ripple representative commented on Clayton's new role, but this is likely to cause dissatisfaction. Specifically, the process for Senate confirmation can be very challenging.
Trump proposed Paul Atkins for the SEC Chair position nearly five months ago, but he only took office yesterday. He is using a new strategy with Clayton.
According to local media, Trump appointed Clayton as Interim U.S. Attorney for the SDNY, intending for him to hold the official role. Trump nominated him last week, and Senate Minority Leader Chuck Schumer swore to block his confirmation.
Schumer stated that Clayton is "not loyal to the law."
However, Clayton does not need a confirmation vote to become Interim U.S. Attorney, and he likely will not need any vote. If the Senate does not confirm him within 120 days, SDNY judges can appoint him until a confirmed candidate is selected.
Trump really does not need to nominate anyone else, and Clayton can serve a normal term.
This is a very illustrative example of how much political power cryptocurrency has gained. Jay Clayton, who initiated the Ripple lawsuit, will work against future enforcement. However, this does not seem to be an obviously good thing.
How much can the industry really rely on its old enemies? How many of cryptocurrency's friends today will be ready to join a crackdown tomorrow? These are just some concerns in the cryptocurrency community.
