Trump Appoints Former SEC Chair Behind XRP Lawsuit as New SDNY Attorney

“`html

Trump Appoints Former SEC Chair Linked to XRP Lawsuit as New SDNY Attorney

Jay Clayton, appointed by Trump as the next US Attorney for the Southern District of New York (SDNY), previously initiated the SEC’s lawsuit against Ripple. While Clayton has vowed to halt crypto enforcement actions in his new role, he is known for starting one of the most significant crypto legal confrontations.

Trump is strategically using a procedural loophole to sidestep a potentially complicated confirmation process, which Senator Chuck Schumer has promised to obstruct. This development raises concerns about the credibility of crypto advocates in the political arena.

Background on Jay Clayton and the Ripple Legal Case

President Trump has committed to promoting more favorable regulations for the cryptocurrency sector, including directing prosecutors to halt enforcement measures against the industry.

Jay Clayton is a recent appointment for this purpose, having been nominated in November. However, his history adds a layer of complexity—he was the one who filed the SEC’s lawsuit against Ripple.

The case is seen as a pivotal moment in the era of SEC Chairman Gary Gensler, but it was Clayton who launched the action. He served as Chair of the SEC from 2017 until his resignation in 2020, stepping down more than six months before his term was officially up.

Clayton filed the lawsuit on December 22 and resigned the following day, which Ripple labeled as a “parting shot.” Now, Clayton finds himself in a position to influence the very enforcement actions he initiated.

After his appointment last November, a spokesperson stated that the office would no longer pursue crypto enforcement actions.

In 2023, Clayton gained media attention for criticizing Gensler’s enforcement measures, much to the disdain of Ripple’s CEO, Brad Garlinghouse.

Watching this clip makes my blood boil. The hypocrisy is shocking. @CNBC @SquawkCNBC should be calling him out for the bullshit.
(As a reminder, Jay Clayton brought the case against Ripple, me and Chris Larsen. And left the building the next day).

— Brad Garlinghouse (@bgarlinghouse) October 28, 2023

Controversies Surrounding the Confirmation Process

While representatives from Ripple have yet to comment on Clayton’s new position, it is expected this decision will stir controversy. The Senate confirmation process for nominees can often be rigorous and contentious.

Trump proposed Paul Atkins for the SEC Chair position nearly five months ago, with his confirmation only happening recently. His approach with Clayton appears to be different.

Local reports indicate that Trump has appointed Clayton as the Acting SDNY US Attorney with intentions for permanence. He first nominated Clayton just last week, but Senate Minority Leader Chuck Schumer has promised to oppose the confirmation, claiming Clayton “lacks fidelity to the law.”

However, Clayton may not require a Senate confirmation to hold the Acting US Attorney position, and he might not need one at all. If the Senate fails to confirm him within 120 days, judges within the SDNY can appoint him until a nomination is finalized.

Related: $2.3 Trillion Liquidity Shock: Franklin Templeton Says XRP Is Next in Line for Massive Inflows

This situation highlights the political influence that the cryptocurrency sector has garnered. Jay Clayton, the individual responsible for initiating the Ripple lawsuit, is now positioned to effectuate a shift against future enforcement. Nonetheless, this raises questions about how dependable such former adversaries are. To what extent can the industry trust those who might readily turn against it in the future?

“`