John Deaton, the Founder of CryptolawUS, has shed light on a complex scenario involving former SEC Chairman Jay Clayton, Sullivan & Cromwell (S&C), Joseph Lubin, Consensys, and several other key players with stakes in the digital currency empire.
Smart and Savvy Moves by Joe Lubin
When Jay Clayton was nominated as SEC Chairman, Joseph Lubin, of Ethereum and Consensys fame, quickly hired S&C to represent his interests. This not only was a masterstroke but effectively guaranteed Clayton’s recusal from any voting related to enforcement actions against one of his law firm’s major clients.
The hiring move by Lubin was more than just clever; it ensured a tactical advantage. By making S&C Partner Deputy General Counsel at Consensys, and employing several of their lawyers, Lubin acted in a way that was both brilliant and intelligent.
The Clayton-Hinman Connection
The deposition of Hinman unveils how Clayton reached out to him, suggesting meetings with Lubin and Consensys, and actively inquiring about the proceedings. This connection seems to run deeper, with Clayton inquiring more than once about the Consensys meetings. It’s not just business as usual; it’s a web we’re only beginning to untangle.
What adds more spice to this story is Hinman’s association with Simpson Thacher, a member of the Enterprise Ethereum Alliance, and the profits he received from his law firm after giving speeches that benefited the firm.
The Ripple Case
Clayton’s subsequent move to One River, which had made a significant bet on BTC and ETH, followed by his vote for an enforcement action against Ripple, only thickens the plot. This resulted in a lawsuit that cost over $200 million.
Despite warnings by Joe Grundfest, who was involved with the Ether founders and warned against the devastating impact on innocent holders, Clayton proceeded with the case.
The entire unfolding of events highlights a system where the choice of a law firm can be the difference between legal torment and regulatory advantage. The move by Lubin to hire S&C may have been smart, but it raises questions about the integrity of a system that can be swayed by strategic legal maneuvering.
The connections between Clayton, Lubin, Consensys, and others are not just coincidences; they’re a wake-up call. In the words of a wise man, “Power tends to corrupt, and absolute power corrupts absolutely.” This is the world of cryptocurrency, where power and money write the rules, and we’re all just spectators in a game that seems to have no end!
Source: https://coinpedia.org/news/john-deaton-exposes-jay-claytons-strategic-connections-how-will-this-impact-the-xrp-holder/