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

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

Jay Clayton, the latest appointment by Trump for the Southern District of New York’s U.S. Attorney position, was responsible for initiating the SEC’s lawsuit against Ripple. Although he pledged to tone down aggressive crypto enforcement within that office, his past actions include leading one of the most significant regulatory cases facing the digital currency sector.

Trump is utilizing a procedural loophole to avoid the standard confirmation process, a strategy that has drawn public dissent from Senator Chuck Schumer. This approach adds further complexity to the ongoing dialogue regarding political alliances within the crypto sphere.

Jay Clayton’s Role in the Ripple Case

Selected by Trump to reduce pressures on the cryptocurrency industry, Jay Clayton was nominated for this prominent legal role in November.

However, it is important to note that Clayton is the individual who commenced the notorious SEC vs. Ripple lawsuit—a landmark development in the landscape of crypto regulation. Serving as the SEC chair from 2017 to 2020, he resigned abruptly just one day after launching the Ripple case.

As of now, Clayton is stepping into the role of Acting U.S. Attorney for the Southern District of New York.

Response from Ripple’s CEO

Clayton has made numerous television appearances in 2023, voicing his critiques of the SEC’s approach under Gary Gensler, which has provoked strong backlash from Ripple’s executives.

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

Continued Political Strategies

Currently, Ripple has not responded to Clayton’s appointment. Nevertheless, his confirmation process has come under fire from various political critics.

Thanks to a legal technicality, Trump can appoint Clayton without requiring Senate validation. If no alternative nomination is made in the next 120 days, judges in the SDNY have the power to confirm his position independently.

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

This situation prompts larger questions: Can the cryptocurrency community trust former regulatory adversaries to safeguard their interests? And how reliable are the new political alliances emerging within the industry?

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