Jay Clayton’s Last Day at SEC Resulted in $50 Billion Cryptocurrency Crash
The SEC Chairman resigned on Wednesday after his recent action against Ripple triggered a $50 billion cryptocurrency sell-off.
Jay Clayton, the Chairman of the US Securities and Exchange Commission (SEC), submitted his resignation to President Trump after spending more than three years as SEC’s head. Clayton’s last day at office cost the cryptocurrency market more than $50 billion as his latest action against Ripple triggered a massive sell-off in XRP, Ethereum and Bitcoin.
In the submitted resignation letter, Clayton outlined his mission to protect investors. Under his chairmanship, the SEC adopted a strict stance against cryptocurrencies and charged several companies involved in crypto offerings, including Block one and Telegram.
Clayton recognized Bitcoin as a payment system and accepted inefficiencies in the current payment mechanisms. During an interview with CNBC, Clayton said: “We determined that bitcoin was not a security, it was much more a payment mechanism and stored value. Our current payment mechanisms have inefficiencies those inefficiencies are the things that are driving the rise of bitcoin.”
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It seems like Clayton has a different opinion about XRP, while he dismissed the option to recognize Bitcoin and Ethereum as a security, the SEC termed XRP as a security in the latest action against Ripple.
Cryptocurrency Crash
The latest action by the SEC Chairman caused a massive sell-off in the cryptocurrency market. XRP crashed more than 50% in just two days as the world’s fourth-largest cryptocurrency dropped from $0.56 to $0.23. The price of XRP is currently trading around $0.25. Bitcoin and Ethereum also reacted to the recent action by the SEC and dropped below $23,000 and $600, respectively. The overall market cap of cryptocurrencies now stands at around $610 billion, which is down from $660 billion yesterday. The cryptocurrency market reached the lowest market capitalization since December 17.
“We’ve always said that there is a lack of regulatory clarity for crypto in the US, and the SEC here in the United States has sat back and watched for years. In fact, the discussion around why XRP is a currency (and not a security) is one we have been having with the SEC for nearly three years and yet we’ve never been met with clarity. We have, however, explained that XRP is not a security,” Ripple CEO, Brad Garlinghouse said in a statement.
Good riddance dirt bag!!
Like every organization under Trump, the SEC = last responders.
Instituting a law suit as you walk out the door, having spent years dodging the real questions regarding XRP and while allowing millions upon millions of dollars to pour into XRP was cowardly. Your job was to protect the investor not punish him. Your actions caused a tremendous loss by those you are charged to protect. What could your motive be? Could XRP be a threat to Swift? Given your close relationships to the very large banks, tying up Ripple in a drawn out suit might give the Swift enough time to stave off a charge and maybe upgrade their… Read more »
What motivated Clayton to sue Ripple as he walks out the door?
clayton should be held accountable for his stupidity
SEC chairman is one of Stupid trump cronies! Trying to muster some last minute money before he leaves.
Wait until Biden team comes in on January, then you’ll see all the crypto coins rise up! I just can’t believe people are so gullible and take the XRP news by heart. Don’t judge the book by the cover until the final page has been read is all I can say.
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How proud you would be of yourself … I would like to know what you see when you look in the mirror …
As is pretty well known at this point, Jay Clayton is working with a Bitcoin and Ethereum firm shortly after pushing forward a 3/5 majority case on Ripple. It gets even more shady though. On December 16, 2020, Clayton’s new boss invested over $1 billion into BTC and ETH. A few days later, Clayton pushes the case through, while him and his two buddies leave the SEC the next day. Then he goes and joins this BTC and ETH fund. (credits to Digital Asset Investor) This is a criminal conflict of interest that wreaks of insider trading, but of course,… Read more »
Jay Clayton is a dishonest person who has been invested in Bitcoin and Ethereum. He’s part of a foundation that’s out to support those coins and out to destroy the XRP coin because he knows its going to swallow his investments. He’s a lier and a cheat. At no point does his employment with the SEC support its business motto. He should be tried for criminal activity. This is why he hiding from the media. He knows the world is on to his criminal shady ethics.