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

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

Jay Clayton, recently appointed by Trump as the New York Southern District Attorney, is notably the individual who instigated the SEC lawsuit against Ripple. Despite earlier commitments to terminate crypto enforcement in the SDNY, Clayton was behind one of the most infamous legal actions within the crypto space.

Trump plans to utilize a strategic loophole to circumvent a complicated confirmation process that Senator Chuck Schumer has pledged to obstruct. This development raises concerns regarding the integrity of the crypto industry’s new political allies.

Jay Clayton’s Role in the Ripple Litigation

President Trump has committed to implementing more favorable regulations for the cryptocurrency sector and has instructed prosecutors to halt enforcement actions against crypto entities.

Clayton was selected for the role in November and officially assumed the position of Acting Attorney. However, there is a significant point of concern—he is the individual who filed the original SEC lawsuit against Ripple.

The SEC vs Ripple case is regarded as a pivotal event in the Gensler administration, with Clayton initiating the lawsuit. His tenure as SEC Chair lasted from 2017 to 2020, during which he filed the SEC suit on December 22, 2020, only to resign the following day in what many described as a parting shot.

Over time, Clayton’s stance appeared to change. When appointed by Trump for the attorney position, a spokesperson indicated that the office would stop crypto enforcement actions.

In a televised interview in 2023, Clayton openly criticized SEC Chair Gary Gensler:

Watching this clip makes my blood boil. The hypocrisy is shocking. @CNBC @SquawkCNBC should be calling him out for the bullshit.

(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

Ripple CEO Brad Garlinghouse voiced his disapproval, describing Clayton’s actions as *“hypocritical.”*

Controversy Surrounding the Appointment Process

While Ripple representatives have not yet made a statement, the cryptocurrency community expresses growing concern. Trump’s approach allows him to bypass the conventional Senate confirmation process. If no vote concludes within 120 days, SDNY judges have the authority to appoint him.

Senator Schumer has made it clear that he intends to obstruct Clayton’s confirmation, proclaiming that he “has no fidelity to the law.”

This appointment highlights the increasing intersection of cryptocurrency with political maneuvering.

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

With Clayton now on the verge of assuming power again—this time positioned supposedly in favor of crypto—can the industry place its trust in him? Or will the political landscape shift yet again?

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