Trump turns to former SEC chair Jay Clayton to fulfill top federal prosecutor role

Donald Trump has tapped up Jay Clayton to serve as Attorney for the Southern District of New York. 

The president-elect has turned to the man who served as the chair of the Securities and Exchange Commission (SEC) during his first term, despite having no previous experience as a criminal prosecutor. 

It is expected the 47th POTUS will introduce several pro-crypto personnel in positions across major federal financial regulators, while he previously committed to firing current SEC chair Gary Gensler on the first day of his second term.

Trump commented on the nomination on his Truth Social network, adding “Jay is a highly respected business leader, counsel, and public servant.”

If he takes up the role, the 58-year-old veteran corporate lawyer and former Wall Street regulator would be responsible for Manhattan in the heart of America’s most prestigious federal prosecutor’s office, the Southern District of New York.  

This location is home to the most significant financial institutions, bringing an array of high-profile cases to the Attorney’s desk.

During his time as SEC chair from 2017 to 2020, the office was responsible for several lawsuits brought against prominent crypto businesses, as well as fledgling projects. The federal government agency took enforcement action against social platforms Telegram and Kik which hampered their crypto aspirations. 

Clayton also rejected every application for crypto exchange-traded funds and one of his last actions was to file charges against Ripple, with the allegation of a $1.3 billion unregistered security, through the sale of XRP.

That particular legal wrangle is ongoing after a New York judge sided with both parties in different aspects, with respective appeals filed.

On Wednesday (Nov. 13), Clayton is said to have intimated to securities lawyers in Manhattan that crypto legislation is likely to follow, as reported by Reuters. He would be in favor of removing “regulatory burdens” to encourage companies to go public.

After his time in office at the SEC, Clayton was appointed by Apollo Global Management to sit on its board as the lead independent director. He also returned to Sullivan & Cromwell as a senior policy advisor, while fulfilling advisory roles at crypto entities Fireblocks and One River.

Image credit: Via Midjourney

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