In a nutshell
- Jay Clayton, a former SEC head, has taken over the important position of U.S. counsel for the Southern District of New York, which has jurisdiction over Wall Street.
- At the SEC, Clayton oversaw 57 crypto-related legal proceedings, including the Ripple case, and afterward advised crypto companies after resigning.
- His visit comes as Clayton’s investigation into the Ripple case, which he started in 2020, is advancing toward a solution.
One year after being appointed time lawyer by President Trump, former SEC Chairman Jay Clayton actually took over his position on Tuesday as U.S. Attorney for the Southern District of New York.
One of the most powerful legal offices in the United States, known for its authority over Wall Street and its track record of significant economic violence cases, is now led by Clayton.
The Southern District has long been instrumental in shaping fiscal rules and enforcing business responsibilities.
Clayton stated in a statement that the U.S. Attorney’s Office would prioritize “protecting people safety, combating fraud, especially on the old and most vulnerable,” and ensure” the integrity of our monetary system, and defending our nationwide security.”
Senate Majority Leader Chuck Schumer’s refusal to return the required “blue slips” previously prevented the official nomination of several of President Trump’s U.S. Attorney nominees.
In consequence, Clayton may continue to operate in his new position on an interval base for up to 120 days.
His extension past that time may call for confirmation from the Senate or nomination by Manhattan district court judges.
While Clayton’s scope will be much wider than his previous position at the SEC, he also played a major role in regulating the 2016 primary penny offering boom during his time there.
During his career from 2017 to 2020, he brought 57 cases against crypto companies, ICOs, and another blockchain-based jobs. A summary released by the SEC shows that Clayton furthermore stopped 18 feared fraud activities involving cryptocurrency and digital goods.
According to data compiled by Cornerstone Research, more of his enforcement actions on crypto were approved by unanimous votes ( 50 % to Gensler’s 37 % ), compared to the total number of his enforcement actions ( 70 vs. 125 initiated ).
Clayton’s relation with the crypto-industry has been complex and contentious.
Clayton’s visit to SDNY comes soon after the SEC dropped its charm in the location Ripple case, which he started during his final months as SEC Chair in December 2020.
The SEC and Ripple announced earlier this month that they had been pursuing a “negotiated solution.”
He left the SEC and moved to expert positions at crypto companies One River and Fireblocks, eventually leading the latter to record a Bitcoin ETF despite earlier suggesting that the Bitcoin marketplace was susceptible to manipulation.
Clayton, who is currently in office, claimed he is “honored” to offer alongside an organization that is” associated with quality and integrity.” In fact, his accomplishments demonstrate a distinguished job.
President Trump nominated Clayton in 2017 to guide the SEC, and he was confirmed by the same month with republican support.
During his day at Sullivan &, Cromwell, Clayton defended many of Wall Street’s major companies before taking over as SEC director.
edited by Sebastian Sinclair
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