The post Former SEC Chair Jay Clayton Under Fire: Faces Scrutiny Over Ripple Lawsuit appeared first on Coinpedia Fintech News The cryptocurrency industry in the United States has been facing challenges due to the lack of clear regulatory guidelines governing digital assets. The U...
The post Former SEC Chair Jay Clayton Under Fire: Faces Scrutiny Over Ripple Lawsuit appeared first on Coinpedia Fintech News
The cryptocurrency industry in the United States has been facing challenges due to the lack of clear regulatory guidelines governing digital assets. The U.S. Securities and Exchange Commission (SEC) has taken an aggressive approach, filing lawsuits against numerous digital currency firms, with one of the most prominent cases being the Ripple vs. SEC lawsuit. The SEC claimed XRP is a security, but the judge ruled it is not. This ruling brings clarity and sets a precedent for similar cases.
The SEC Chairman, Gary Gensler, has been heavily criticized by the industry for his handling of digital assets and his stance on XRP. Another individual involved in the Ripple lawsuit has also faced scrutiny, adding to the ongoing regulatory debates in the US crypto industry.
Ripple Lawsuit Puts Former SEC Chairman Jay Clayton Under Scrutiny
Tony Edward, the Founder & Host of the Thinking Crypto Podcast, recently tweeted about Chairman Jay Clayton, who has come under scrutiny for his involvement in the Ripple lawsuit. He has been dubbed as “Coward Clayton” for filing the lawsuit against Ripple, which reportedly affected XRP holders significantly. However, Clayton resigned from his position at the SEC shortly after the lawsuit was initiated.
Despite being a top CNBC contributor on cryptocurrencies, Clayton has not appeared with notable anchors like Melissa Lee, Joe Kernen, Becky Quick, and Andrew Ross Sorkin. His absence from public commentary has sparked criticism from several XRP investors and the cryptocurrency community at large.
Jay Clayton’s Lack of Clarity in SEC’s Communication Added Uncertainty
Last month, an XRP community member named Ashley Prosper shared an internal SEC email, labeled Exhibit 276 in the SEC vs. Ripple lawsuit. According to Prosper, the document reveals that Jay Clayton had no interest in providing Ripple with any clarity on XRP.
In response, Pro-XRP Attorney John Deaton pointed out that both Clayton and Hinman had received an XRP Memo analyzing XRP under Howey’s Test. Deaton argued that if the memo had concluded that XRP was a security, Clayton and Hinman would have informed Ripple executives during their meeting. However, Clayton never did, which further added to the uncertainty and confusion.