How will the exposure of Jay Clayton’s strategic connections by John Deaton affect XRP holders?

Smart and Savvy Moves by Joe Lubin

In a complex scenario involving former SEC Chairman Jay Clayton, Sullivan & Cromwell (S&C), Joseph Lubin, Consensys, and other key players in the digital currency empire, John Deaton, the Founder of CryptolawUS, has shed light on the matter. Deaton took to Twitter to share his insights, stating that several XRP holders were frustrated with his comments about Lubin’s hiring of S&C. Deaton revealed that Lubin quickly hired S&C, including several of their lawyers, after Clayton’s appointment as SEC Chairman, effectively ensuring Clayton’s recusal from any enforcement actions against Consensys.

The move by Lubin to hire S&C was not just clever, but also strategic. By appointing S&C Partner as Deputy General Counsel at Consensys and employing their lawyers, Lubin gained a tactical advantage and ensured that Clayton would not be involved in any voting related to enforcement actions against his law firm’s major client.

The Clayton-Hinman Connection

Further revelations came to light during the deposition of Hinman, shedding more light on the connection between Clayton and Consensys. Clayton actively inquired about the proceedings involving Lubin and Consensys, suggesting meetings and showing a keen interest. This connection appears to run deep, with Clayton’s repeated inquiries about the Consensys meetings. Adding to the intrigue is Hinman’s association with Simpson Thacher, a member of the Enterprise Ethereum Alliance, and the profits he received from his law firm for speeches that benefited the firm.

The Ripple Case

Clayton’s subsequent move to One River, which had a significant investment in BTC and ETH, followed by his vote for an enforcement action against Ripple, adds another layer to the story. The resulting lawsuit cost over $200 million. Despite warnings from Joe Grundfest, who was involved with the Ether founders, Clayton proceeded with the case, disregarding the potential impact on innocent holders.

The unfolding events highlight a system where the choice of a law firm can make a significant difference in legal proceedings and regulatory outcomes. Lubin’s decision to hire S&C may have been a smart move, but it raises questions about the integrity of a system that can be influenced by legal maneuvering.

The connections between Clayton, Lubin, Consensys, and others are not mere coincidences. They serve as a wake-up call to the world of cryptocurrency, where power and money wield significant influence and shape the rules. In the words of a wise man, “Power tends to corrupt, and absolute power corrupts absolutely.” As spectators in this game with no clear end, we must remain vigilant and demand transparency and fairness in the digital currency empire.