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Former SEC Boss Behind Ripple Lawsuit Hired by Crypto Hedge Fund That Holds Bitcoin and Ethereum

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Mon, 03/29/2021 - 13:24
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Alex Dovbnya
Former SEC chairman Jay Clayton will advise an Alan Howard-backed hedge fund on cryptocurrencies
Former SEC Boss Behind Ripple Lawsuit Hired by Crypto Hedge Fund That Holds Bitcoin and Ethereum
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Volatility hedge fund One River Asset Management has hired Jay Clayton, the ex-chairman of the Securities and Exchange Commission, as a cryptocurrency advisor.

In a Bloomberg interview, Clayton expressed his astonishment over how fast cryptocurrencies ended up being embraced by big-name investors:

Three years ago, I didn't believe we would be where we are todaythe number of respected investors who have embraced digital assets. I would not have predicted this level of take-up.

As reported by U.Today, One River—which is primarily known for its volatility strategies that brought it hefty profits during the pandemic-induced market collapse—entered the crypto scene in late 2020.

The hedge fund opened a cryptocurrency-focused subsidiary called One River Digital with $600 million worth of Bitcoin and Ethereum in its coffers. CEO Evan Peters announced that the aforementioned sum would grow to $1 billion in the first quarter of 2021.

British billionaire hedge fund manager Alan Howard took a stake in the company.

Related
SEC Chairman Jay Clayton Steps Down with a Bang After Suing Ripple

Clayton calls for strong regulations

The former boss of the most formidable U.S. regulator is in great demand. Last Monday, Clayton was appointed as the chairman of New York-based Apollo Global Management after the departure of billionaire Leon Black.

During his three-year-long tenure, the 54-year-old attorney drew criticism for quashing hopes of launching a Bitcoin exchange-traded fund (ETF) with numerous rejections. His agency would also go after Ethereum-based initial coin offerings that were rife with fraud. Clayton's final act was suing controversial blockchain company Ripple over its unregistered XRP sales.

Despite joining One River, Clayton remains a hard-liner, advocating for strong regulations:

I see a wide range of outcomes for digital assets that include strong government regulation, domestically and globally.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.