The Potential Misstep That Could Have Averted the SEC Lawsuit Against Ripple
In the ongoing saga between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs, attorney John Deaton recently shed light on a potential misstep by Ripple that could have avoided the lawsuit. Deaton, who closely monitors the lawsuit and runs the website CryptoLaw, praised Joseph Lubin, Ethereum’s Co-Founder, for hiring the law firm Sullivan & Cromwell after Jay Clayton’s appointment to the SEC. This strategic move ensured that Clayton would recuse himself from voting on enforcement actions against his former law firm’s clients.
Key Points:
- Joseph Lubin’s decision to hire Sullivan & Cromwell after Jay Clayton’s appointment to the SEC was strategic and ensured Clayton’s recusal from voting on enforcement actions against his former law firm’s clients.
- Clayton showed interest in William Hinman’s meetings with ConsenSys, indicating a potential collaboration between Clayton and his former law firm.
- Deaton questioned Hinman’s claims of retirement from his law firm and raised concerns about potential conflicts of interest.
- Clayton’s post-SEC career move to One River, a firm that bet on BTC and ETH, seemed coincidental after voting for enforcement action against Ripple.
- Despite warnings from Joe Grundfest, a former SEC commissioner, Clayton proceeded with the enforcement action against Ripple.
Hot Take: The SEC lawsuit against Ripple could have been avoided if Ripple had made a different strategic move. The connections between Clayton, Lubin, and their former law firms raise questions about potential conflicts of interest within the SEC.
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