Former SEC Chair Appointed to New Critical Role, Not Head of SEC

Key Points:

• President-elect Donald Trump has nominated former SEC chair Jay Clayton to serve as U.S. Attorney for the Southern District of New York.
• Clayton lacks criminal law experience but gained a reputation for pursuing financial enforcement cases, including actions against cryptocurrency firms like Ripple.

According to Reuters, President-elect Donald Trump announced plans on Thursday to nominate Jay Clayton, the former SEC chair, as U.S. Attorney for the Southern District of New York.

Read more: Former SEC Chair Now Changes His View, Backing The Bitcoin ETF Approval 

Trump Taps Former SEC Chair Jay Clayton for Southern District Prosecutor Role

If confirmed by the Senate, he would be in one of the most powerful prosecutorial jobs in the country. There, he would oversee a steady flow of high-profile cases related to financial crimes and public corruption.

The former SEC chair is now a Sullivan & Cromwell lawyer specializing in mergers and capital raising. He has no direct experience in criminal law, the rarest of profiles for a Southern District prosecutor.

An independent who made consensus-building at the SEC a signature of his agenda, Clayton brought numerous cases involving cryptocurrency firms, including the high-profile case against blockchain company Ripple for selling initial coin offerings allegedly without legal clearance.

High Profile Cases At Southern District Give Political Heft To Clayton’s Nomination

Clayton’s appointment to the Southern District comes as the office remains a focal point in politically sensitive investigations. It previously prosecuted Trump’s former attorney, Michael Cohen, who has since become an outspoken critic of the former president. The office also investigated Trump over hush money payments, which later led to state charges against him but no federal indictments.

The Southern District has, during the Biden administration, been led by Damian Williams, who oversaw several high-profile cases, including the conviction of the former FTX founder Sam Bankman-Fried. If confirmed, the former SEC chair will replace Williams in charge of an office with a reputation for aggressive financial crime and corruption prosecutions.