Jay Clayton once again steps into Trump’s administration but not as the head of SEC like in the previous term. This time he is nominated for the role of Manhattan’s chief prosecutor, where he will be in charge of high-profile civil and criminal cases.
In 2020 Clayton was nominated for the same position but refused to leave his role as the chair of SEC (the U.S. Securities and Exchange Commission). He was the chairman of the SEC from May 4th 2017 to December 23rd 2020.
As a prominent personality who has experience-level knowledge in civil and criminal cases, the public is hopeful that he will be an asset to the Trump Administration. Trump also nominated Dean John Sauer, another lawyer, to serve as the solicitor general.
Who is Jay Clayton? From a Court Clerk to SEC Chairman to Chief Attorney
Started his career as a clerk for the Judge of the District Court for the Eastern District of Pennsylvania, Clayton later joined as a full-time associate for Sullivan & Cromwell, specializing in acquisitions and representing major Wall Street firms like Goldman Sachs.
When Donald Trump was elected first time as president in January 2017, he nominated Clayton to become the SEC Chairman. After the voting procedures, he was sworn into this role on May 4, 2017. He resigned on December 23, 2020, with his final action of suing Ripple Labs for selling XRP through unregistered securities.
Beyond initiating the famous XRP case, Jay Clayton is well-versed in blockchain technology and the crypto economy. After he resigned from SEC, Clayton rejoined Sullivan & Cromwell which has been focusing on the cryptocurrency industry and digital asset management.
How the New Roles Will Impact Crypto? A Crypto Legislation On the Way?
Jay Clayton said on Wednesday that there are plans for Congress to adopt legislation that governs the crypto industry. “I think we will see crypto legislation,” Clayton said in an ambiguous tone at a gathering of New York-based lawyers.
According to Clayton, the problems at an administrative and executive level can be tackled effortlessly with crypto legislation. He is hopeful that all the aggressive actions against crypto under Joe Biden’s rule will be reconsidered and relaxed under Trump’s second term.
What are the Responsibilities of the U.S. Attorney of Manhattan?
Informally called the U.S. Attorney of Manhattan, the job of the United States attorney for the Southern District of New York is to handle a wide range of cases like cybercrime, domestic terrorism, corruption, white-collar crimes, civil disputes, and other organized crimes.
Jay Clayton will now be nicknamed the “Sheriff of Wall Street”, as he will be monitoring all the civil and criminal matters of Wall Street. With around 220 assistant attorneys below him, Clayton is responsible for representing Manhattan, the Bronx, and the surrounding counties.
Who Will be the Next SEC Chairman?
As Jay Clayton’s unexpected role shift has removed him from the list of major candidates, the public has various opinions regarding who will succeed Gary Gensler as the next SEC Chairman. Here is a list of major contenders for the role:
- Hester Peirce: Often called Crypto Mom by the blockchain communities, SEC Commissioner Hester Peirce has the potential to implement crypto-friendly laws and regulations. The public support is what makes her a strong candidate for the role.
- Chris Giancarlo: Popularly called Crypto Dad, Chris Giancarlo is also a strong contender for the SEC chair. He was the former chairman of the Commodity Futures Trading Commission (CFTC) and has experience as a prominent lawyer.
- Paul Atkins: He was the SEC Commissioner during the George W. Bush administration. Paul Atkins maintains a good relationship with Donald Trump, as he played a key role in the popularity of Trump during the 2016 elections.
- Robert Stebbins: Several industry experts and government officials consider Robert Stebbins as the perfect candidate for SEC Chairman. He worked as Chief Legal Officer in SEC and assisted Jay Clayton in 2017. He was a prominent staff and has collaborated with giant companies like Morgan Stanley.
- Dan Gallagher: Although the probability is low, Dan Gallagher is also a potential candidate for the chair. Joined in 2020, he is currently the Chief Legal Officer at Robinhood. He had notable experience in SEC while Obama was ruling the country from 2011 to 2015.
Who Has Joined Trump’s Administration So Far?
Like Jay Clayton, Trump has appointed various previous collaborators to his new administration, including Elon Musk in the key role of the newly formed Department of Government Efficiency (DOGE) and Robert F Kennedy jr as the Secretary of Health.
Doug Collins is selected as the lead of the Department of Veteran Affairs and Marco Rubio as the Secretary of the State. The chief of the White House staff is Susie Wiles and Matt Gaetz is the new Attorney General. Other major nominations and appointments will be announced soon.