Prominent figures in the crypto community, including a legal expert, have argued that the immediate past chairman of the SEC frustrated the initial route to Bitcoin spot ETF, only to come back to show support.
In a recent post, Perianne Boring, the pro-Bitcoin founder of Digital Chamber, pointed out that Jay Clayton, former SEC Chairman, had obstructed the approval of a Bitcoin spot exchange-traded fund during his tenure. This observation comes amid Clayton’s recent admission that the approval of a Bitcoin spot ETF is inevitable.
In a recent interview, Clayton expressed the contrasting view, stating that the U.S. regulator would eventually approve a Bitcoin spot ETF. However, he noted the likelihood of endorsement in the early weeks of January remains uncertain.
I agree that spot #bitcoin ETFs are inevitable. But let’s not forget that Mr. Clayton blocked spot bitcoin ETFs during his tenure as SEC Chair during the Trump administration. https://t.co/JSpf8OdnwI
— Perianne (@PerianneDC) January 6, 2024
Perianne Boring’s exposition got the attention of John Deaton, a lawyer renowned for his pro-XRP stance, who provided additional insights into the challenges posed by Clayton’s actions.
Deaton argued that it is one hundred percent accurate to attribute the denial of a spot ETF to Jay Clayton’s “self-serving” tenure at the SEC. According to the lawyer, without Clayton’s actions, current SEC chairman Gary Gensler would be unable to deny the approval of a spot ETF arbitrarily.
ONE HUNDRED PERCENT ACCURATE
Without Jay Clayton’s self-serving tenure at the SEC, Gensler would not have been able to arbitrarily and capriciously deny a Spot ETF. He was 💯 wrong to block the ETF. Remember as well: Clayton met with Gensler the day before he filed the… https://t.co/oj5ITJihZ6
— John E Deaton (@JohnEDeaton1) January 7, 2024
Furthermore, Deaton highlighted a meeting between Clayton and Gensler the day before the Ripple/XRP case was filed in 2020. He suggested XRP was discussed during their meeting, as the SEC leadership contested that all XRP constituted illegal securities.
Also, Deaton mentioned Clayton’s refusal to implement the Safe Harbor proposed by SEC commissioner Hester Peirce. In Deaton’s words, Clayton “made sure he kept the regulatory status of Bitcoin and crypto vague.”
In parallel, the lawyer pointed out Clayton’s subsequent involvement in advising entities like OneRiver on Bitcoin (BTC), Ethereum (ETH), and crypto policy after leaving the SEC. Deaton portrays this as a lucrative business model for Clayton and his associates.
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