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

Trump Names Former SEC Chair Behind XRP Lawsuit New SDNY Attorney

Jay Clayton, President Trump’s selection for the Southern District of New York’s U.S. Attorney, is the architect behind the SEC’s lawsuit against Ripple. Despite pledging to halt crypto crackdowns at the SDNY, Clayton is the individual who initiated one of the most high-profile cases in the space.

Trump plans to utilize a procedural loophole to evade a convoluted confirmation process, which Senator Chuck Schumer has vowed to obstruct. This move prompts a reevaluation of the trustworthiness of crypto’s newly formed political alliances.

Jay Clayton’s Role in the Ripple Lawsuit

President Trump has committed to advocating for more supportive crypto regulations, directing prosecutors to scale back enforcement actions. In November, he selected Jay Clayton for this pivotal role, and Clayton has now officially assumed the position of Acting Attorney.

However, one major concern remains — Jay Clayton was the one who initiated the SEC’s case against Ripple.

The SEC versus Ripple lawsuit is regarded as a defining legal battle during Gary Gensler’s leadership, but it was Clayton who launched the suit. He served as SEC Chair from 2017 until 2020, resigning just one day after the lawsuit was filed, a move Ripple described as a “parting shot.”

Now, years later, Clayton finds himself on the opposite side of the crypto enforcement spectrum. When Trump reappointed him last year, a representative stated that SDNY prosecutors would cease crypto crackdowns.

In 2023, Clayton publicly criticized Gensler’s tough stance on crypto during televised appearances, much to the annoyance of Ripple 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

Confirmation Process Sparks Additional Controversy

Ripple has not yet issued any statement regarding Clayton’s recent appointment. His selection through a loophole bypasses the standard Senate confirmation route, an approach that has attracted criticism from various political leaders.

Five months ago, Trump nominated Paul Atkins for the SEC Chair position, who was confirmed only recently. In contrast, with Clayton, the strategy was altered: Trump designated him as Acting U.S. Attorney, eliminating the need for Senate approval. If unchallenged, a panel of SDNY judges could extend his tenure indefinitely.

This means Clayton might continue to serve for a complete term without requiring another nomination.

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

This development underscores the growing intersection of crypto and political influence. However, many within the industry question how reliable former opponents can truly be. Furthermore, it raises concerns about how many of today’s crypto “friends” could become adversaries in the future.