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Former SEC Chair Jay Clayton sworn in as interim US attorney for Manhattan

Former SEC Chair Jay Clayton confirmed that he has been appointed as the interim US Attorney for the Southern District of New York after the Democratic Party’s Senate leader used a “blue slip” to block a vote confirming Clayton’s position.

The appointment comes a little over five months after US President Donald Trump nominated Clayton to take on the role. He replaces Damian Williams, who played a major role in the conviction of former FTX CEO Sam Bankman-Fried and other high-profile crypto cases.

Clayton said on April 22 his top priorities would be to protect public safety, ensure the integrity of the US financial system, defend national security interests and combat fraud, particularly against the elderly and most vulnerable.

The temporary nature of Clayton’s appointment resulted from Democrat Senate Minority Leader Chuck Schumer’s use of a blue slip to block Clayton’s confirmation on April 16, effectively preventing a Senate vote and official confirmation of his position. 

Blue slips can be used by senators to block US attorney or district court judicial nominees in their home states. 

Clayton is allowed to serve as interim US attorney for up to 120 days without Senate confirmation. After that, he will need to be approved in a Senate vote or receive a temporary extension of his interim status from Manhattan’s federal court.

Trump criticized Schumer’s move in an April 17 Truth Social post, pointing out that Clayton received bipartisan support in the Senate and that Clayton complied with all requests asked of him.

Former SEC Chair Jay Clayton sworn in as interim US attorney for Manhattan
Source: Donald Trump

The interim status of Clayton’s position will last until around Aug. 20. The role will see him as the top law enforcement officer for New York’s Southern District, encompassing the counties of New York, Bronx, Westchester, Rockland, Putnam, Orange, Dutchess and Sullivan.

The Southern District of New York is the oldest federal court district in the US, and its location in the country’s financial epicenter means it often handles high-profile cases involving white-collar crime.

Clayton has shared mostly positive views on crypto

Clayton served as SEC chair between May 4, 2017, and Dec. 23, 2020, and brought 56 cases against crypto firms during his tenure.

Related: Oregon AG lawsuit against Coinbase calls XRP unregistered security

He stated in a December 2021 CNBC interview that he’s a “huge believer in crypto technology,” adding that “the efficiency benefits in the financial system and otherwise from tokenization are immense.”

Clayton has also praised Bitcoin (BTC) as a prominent store of value, but didn’t allow Bitcoin exchange-traded products during his time as SEC chair.

The first US Bitcoin investment product was approved in 2021 under former SEC Chair Gary Gensler.

Magazine: XRP win leaves Ripple and industry with no crypto legal precedent set

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US Senate passes GAIN Act, prioritizing domestic AI and HPC chip sales

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US Senate passes GAIN Act, prioritizing domestic AI and HPC chip sales

US Senate passes GAIN Act, prioritizing domestic AI and HPC chip sales

The provision in the National Defense Authorization Act could create even more economic pain for the crypto mining industry if passed.

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Six global policy changes that affected crypto this week

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Six global policy changes that affected crypto this week

Six global policy changes that affected crypto this week

Major policy changes worldwide are shaping how the crypto industry will operate.

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Corbyn and Sultana have ‘patched things up’ – but what really happened?

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Corbyn and Sultana have 'patched things up' - but what really happened?

For decades he was the dissident backbencher, then unlikely Labour leader. She was a firebrand left-wing Labour MP with a huge online presence. To the left – on paper – it looked like the perfect combination.

Coupled with the support of four other independent MPs, it held the blueprints of a credible party. But ever since the launch of Your Party (working title) the left-wing movement has faced mockery and exasperation over its inability to look organised.

First, we learned Jeremy Corbyn’s team had been unaware of the exact timing of Zarah Sultana’s announcement that she would quit the Labour Party. Then a much bigger row emerged when she launched a membership drive linking people to sign up to the party without the full consent of the team.

It laid bare the holes in the structure of the party and pulled focus away from its core values of trying to be a party to counter Labour and Reform UK, while also drawing out some pretty robust language from their only woman MP calling the grouping a “sexist boys club”. It gave the impression that she was being sidelined by the four other male MPs behind the scenes.

This week, they tried to come together for the first time at a rally I attended in Liverpool and then, in quick succession, another event at The World Transformed conference the day after. But not everyone I spoke to who turned up to see the two heroes of the left found them all that convincing.

Jeremy Corbyn admitted to me that “there were some errors made about announcements and that caused a problem”. He said he was disappointed but that “we’re past that”.

Jeremy Corbyn and Zarah Sultana take part in a discussion on Your Party at The World Transformed conference in Manchester. Pic: PA
Image:
Jeremy Corbyn and Zarah Sultana take part in a discussion on Your Party at The World Transformed conference in Manchester. Pic: PA

Zarah Sultana said they were like Liam and Noel, who managed to “patch things up and have a very successful tour – we are doing the same”.

The problem is, it didn’t really explain what happened, or how they resolved things behind the scenes, and for some, it might have done too much damage already.

Layla signed up as a member when she first saw the link. It was the moment she had been waiting for after becoming frustrated with Labour. But she told me she found the ordeal “very unprofessional, very dishonest and messy”, and said she doesn’t want to be in a disorganised party and has lost trust in where her money will end up. She’s now thinking about the Greens. She said their leader, Zack Polanski “seemed like such a strong politician” with “a lot of charisma”.

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Jeremy Corbyn’s back – with Zarah Sultana and a new party. But is it a real threat to Labour, or just political theatre?

Since Polanski’s rise to power as leader, the Green Party has surged in popularity. According to a recent poll, they went up four points in just one week (following their conference). Voters, particularly on the left, seem to like his brand of “eco populism”.

While he has politely declined formally working in conjunction with Your Party publicly, he has said the “door is always open” to collaboration especially as he sees common goals between the two parties. Zarah Sultana said this weekend though that the Greens don’t describe themselves as socialists and that they support NATO which she has dubbed an “imperialist war machine”.

While newer coalitions may not be the problem for now, internal fissures might come sooner than they expect. Voters at the rally this weekend came with pretty clear concerns about some of the other independent MPs involved in Your Party.

The two heroes of the left fell out over a row over their party's paid membership system
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The two heroes of the left fell out over a row over their party’s paid membership system

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I asked Ayoub Khan if he considered himself left-wing. A question that would solicit a simple answer in a crowd like this. But he said his view was very simple, that he is interested in fighting for equality, fairness and justice: ‘We all know that different wards, different constituencies have different priorities and MPs should be allowed to represent the views of the communities they serve.” To him, that can sometimes mean voting against the private school tax and against decriminalising abortion.

The Your Party rally on Thursday night was packed, but the tone was subdued. People came full of optimism but they also wanted to make up their mind about the credibility of the new offering and to see the renewed reconciliation up close.

The organisers closed the evening off with John Lennon’s song, Imagine. That was apt, because until the party can get their act together, that’s all they’ll be doing.

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