Donald Trump Names Former SEC Chair Jay Clayton as US Attorney for Southern District of New York

Donald Trump’s pick of Jay Clayton for U.S. Attorney brings back a regulatory heavyweight known for reshaping crypto rules at the SEC.

Key Notes

Donald Trump has appointed Jay Clayton as US Attorney for the Southern District of New York, noting his strong public service background.Clayton is known for his substantial legal expertise, particularly in crypto regulations.His SEC tenure sparked controversy, especially for his stance that classified most ICOs as securities.

Donald Trump has named former Securities and Exchange Commission (SEC) Chair Jay Clayton as the new US Attorney for the Southern District of New York. Clayton, who led the SEC from 2017 to 2020, is well-regarded for his extensive legal background and expertise in crypto regulations, particularly from his controversial SEC days when he classified most initial coin offerings (ICOs) as securities.

Trump spoke highly of Clayton, calling him “a highly respected business leader, counsel, and public servant”.

Clayton’s appointment as US Attorney is seen by some as a signal that Trump’s administration may prioritize stringent but clear-cut regulatory frameworks for the crypto industry, a stance Clayton upheld at the SEC. The news has stirred widespread interest, as the Southern District of New York often handles high-profile cases in finance and digital assets.

Jay Clayton’s SEC Legacy

Jay Clayton’s tenure saw the agency clamp down on over 56 cases involving ICOs and blockchain technology, establishing the DAO Report that asserted jurisdiction over certain crypto assets and projects. His most notable decision at the SEC was green-lighting a lawsuit against Ripple Labs, alleging that its XRP token was an unregistered security, a case that has since escalated to the appellate court level.

Clayton left the SEC on December 23, 2020, and set the stage for his successor, Gary Gensler, who has continued to pursue rigorous regulations for digital assets.

Later in 2021, Jay Clayton shocked the digital currency world with his declaration of trust in blockchain technology. Since leaving the agency, he has taken on roles in private advisory capacities and consulted several crypto firms. Currently, Clayton is a senior policy advisor at Sullivan & Cromwell, a popular law firm known for its work with financial services and blockchain technology.

While Clayton is no stranger to enforcement, his varied experience post-SEC suggests he may support a mix of enforcement and innovation within the crypto space.

Clayton’s appointment coincides with speculation over the future of current SEC Chair Gary Gensler, who has received considerable pushback from the crypto community. Trump has been vocal about his disapproval of Gensler’s restrictive policies on digital assets, even promising to fire him during his campaign.

While Gensler hasn’t confirmed any plans to resign, it is customary for an SEC Chair to step down amid a change in administration. This has led to intense speculation about his potential replacement.

Among the names floated for Gensler’s role is Chris Giancarlo, former Chair of the Commodity Futures Trading Commission (CFTC), affectionately known as “Crypto Dad” for his pro-blockchain stance. However, Giancarlo has publicly dismissed rumors of his interest in the SEC Chair position.

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