Jay Clayton – former Chairman of the U.S. Securities and Exchange Commission (SEC) – has officially taken on the role of Federal Prosecutor for the Southern District of New York (SDNY), often referred to as the 'frontline' of the U.S. in investigating financial crimes, particularly on Wall Street. His return has drawn attention not only due to the significant influence of this office but also because of the controversial law enforcement record regarding the cryptocurrency sector.
The leader of SDNY – dubbed the 'Prosecutor of Wall Street'
Clayton's appointment to #SDNY occurred just a week after President Trump (term 2025-2028) appointed him as acting prosecutor. While he holds an interim role for 120 days, his position at SDNY – one of the most influential prosecutorial offices in the U.S. – carries strategic significance, especially given the increasing complexity of financial and cryptocurrency cases.
SDNY is renowned for having direct jurisdiction over the largest financial institutions in the U.S., and has led in cases related to financial fraud, money laundering, and recently, lawsuits concerning blockchain and crypto.
In his inaugural statement, Clayton affirmed that his priorities are 'protecting public safety, combating fraud – especially against the elderly and vulnerable', as well as maintaining 'the integrity of the financial system' and 'protecting national security.'
From the SEC to the Prosecutor's Office: the baggage is 57 crypto lawsuits
Before stepping into the role of prosecutor, Jay Clayton was the head of the SEC from 2017 to 2020, where he directly led many legal actions against blockchain projects.
During his tenure at the SEC, Clayton has:
Initiated 57 lawsuits related to cryptocurrencies, including ICOs (Initial Coin Offerings), DeFi projects, and investment fraud cases.
Prevented 18 suspected fraudulent activities related to blockchain and digital assets.
Notably, he is the initiator of the most famous lawsuit: SEC vs. Ripple Labs – a multi-year case that has had widespread implications for the entire crypto market.
Compared to his successor Gary Gensler, the number of lawsuits initiated by Clayton is fewer (70 vs. 125), but according to statistics from Cornerstone Research, 50% of actions during Clayton's tenure were passed with a unanimous vote, while Gensler achieved only 37%. This indicates a higher consensus within the SEC during his time.
A complex relationship with the crypto industry
Clayton has often expressed skepticism about the Bitcoin market, particularly regarding its susceptibility to price manipulation. However, after leaving the SEC, he began advising blockchain companies like One River and Fireblocks – major names in digital asset management and crypto infrastructure.
Moreover, One River – where #Clayton serves as an advisor – has applied to list a Bitcoin ETF, a move that contradicts his previous conservative stance.
This 'turnaround' has made him a controversial figure in the crypto community: some see him as someone who understands market risks and acts cautiously; others believe he is 'standing on two feet', tightening regulations while collaborating with crypto companies for profit.
Returning just in time as Ripple is nearing the end of its lawsuit
The timing of Clayton's appointment to SDNY is particularly coincidental: the SEC had just withdrawn its appeal in the Ripple lawsuit – a case that Clayton himself launched in December 2020, just days before leaving the SEC. Currently, the SEC and Ripple are in negotiations to reach a final settlement.
This further raises public curiosity about whether Clayton – now back as the 'law arm' – will continue to intervene in crypto lawsuits or how SDNY's new direction under his leadership will impact the entire Web3 industry.
Impact on the crypto market and Binance users
Jay Clayton's return to politics as the head of SDNY brings two contradictory signals for the crypto market:
Opportunities for dialogue and a clearer legal framework: While Clayton was once tough on crypto, he was also the first to pave the way for dialogues between the SEC and blockchain businesses. If he adopts a balanced mindset, this could be a step forward in establishing a more transparent legal framework for crypto users in the U.S. – especially for serious projects listed on major exchanges like Binance.
Increased risks of regulation: However, with the authority of SDNY, Clayton may expand lawsuits or investigations against token or DeFi projects that show signs of regulatory violations – this could directly affect the value of certain coins/tokens and put pressure on users or individual investors.
Risk warning: Investing in cryptocurrencies always carries high risks, especially when the market is affected by stringent legal policies and regulations. Users should exercise caution, stay updated, and only invest based on thorough research, avoiding chasing one-sided news.