Former SEC Chairman Jay Clayton Appointed as Interim US Attorney for SDNY Amid Political Controversy
New York — Former Securities and Exchange Commission (SEC) Chairman Jay Clayton has been appointed as interim US Attorney for the Southern District of New York (SDNY), with his formal nomination stalled by opposition from Democratic Senate Minority Leader Chuck Schumer.
The interim appointment was announced by President Donald Trump on the Truth Social platform on Wednesday, sharply criticizing Schumer for what he sees as partisanship and obstruction of the rule of law. Trump highlighted Clayton's contributions during his previous tenure as SEC chief, calling him "a deeply knowledgeable, highly qualified individual who is respected by all of Wall Street."
Clayton has received support from some in the crypto community, with a stance that is considered "softer" than that of his successor Gary Gensler. In a 2021 interview with CNBC, Clayton said he was “a big believer in blockchain technology,” leading many Web3 investors to expect a more open regulatory environment under his leadership.
However, Schumer was quick to dismiss Clayton’s formal nomination, citing his lack of experience as a prosecutor and concerns that the appointment could be used as a political tool. “Donald Trump clearly has no interest in the law and just wants to use the judicial system to go after his political opponents,” Schumer said, citing an article in The New York Times.
In addition to Clayton, another Trump nomination for the position of U.S. Attorney for the Eastern District of New York — Joseph Nocella — was also blocked by Schumer.
Trump called Schumer’s actions “an abuse of power,” noting that all of his nominees were being blocked without a fair chance of being evaluated. He also said Clayton “will bring integrity and efficiency to the legal system in SDNY.”
The SDNY is one of the most important jurisdictions in the United States, handling high-profile economic cases and high-profile investigations involving finance, business, and sometimes politics. Whoever leads it has significant influence over how cases are prosecuted or investigated.
With an election year approaching and the relationship between the White House and law enforcement agencies continuing to be a hot topic, Clayton’s appointment is seen as a strategic move — both symbolic and potentially shifting the balance of power in major investigations underway in New York.