On September 25, 2023, Empower Oversight, a nonprofit, nonpartisan educational organization, submitted a new Freedom of Information Act (FOIA) request. The request sought communications between Jay Clayton, the former Securities and Exchange Commission (SEC) Chairman, and numerous people. He may have interacted with the agency’s improper handling of cryptocurrency enforcement decisions.
Empower Oversight Presses for Additional Crypto Communications from Clayton SEC Tenurehttps://t.co/BMOJUzDR6Y
— Empower Oversight (@EMPOWR_us) September 25, 2023
The Empower Oversight’s FOIA’s request stems from Jay Clayton’s statements regarding Bitcoin. The other senior officials’ statements on Ether suggest that “they were not securities subjected to SEC enforcement jurisdiction, only to have the SEC file suit as Clayton was leaving the agency against Ripple related to another cryptocurrency, XRP, alleging that it was a security.”
Additionally, following Clayton’s tenure at the SEC, he joined cryptocurrency hedge fund One River Asset Management, a firm that focuses exclusively on Bitcoin and Ether, cryptocurrencies. Notably, it benefited from the SEC’s selective enforcement action.
Recently, the SEC released documents that are related to the possible conflicts of interest in the agency’s cryptocurrency enforcement decisions. The document release came after two years of FOIA requests and litigation filed by Empower Oversight.
Former SEC Chair’s Crypto Journey
According to a recent report from a media outlet, from May 4, 2017, to December 23, 2020, Jay Clayton notably “declared Bitcoin was not a security.” Additionally, affirmations from senior SEC officials echoed his stance on Ether. Significantly, these announcements supported the value of both tokens.
However, as the term of Clayton ended, the SEC’s sudden lawsuit against Ripple, claiming its XRP token was a security, “threw the cryptocurrency industry into a whirlwind of speculation.” Therefore, eyebrows were raised when the former SEC chair joined One River Asset Management post-SEC, which was centering solely on Bitcoin and Ether investments.
Due to all these developments, Empower Oversight intensified its efforts to unearth any “behind-the-scenes communication” between Clayton and several identified individuals during his time at the SEC.
Notably, after the recent move from Empower Oversight, it seems like they seek comprehensive communication details between Clayton and figures such as Jasmine Burgess, John D’Agostino, among others. Besides trying to piece together Clayton’s decisions, the organization is determined to ensure no conflicts of interest during his leadership.
It must also be noted that Patrick McHenry, Chairman of the House Financial Services Committee, criticized the SEC for its lack of transparent regulation concerning crypto-related activities in the U.S. The previous requests by the organization have led to revelations in the past.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/09/26/foia-request-sheds-light-on-the-cryptocurrency-approach-of-sec/