Former chairman of the Securities and Exchange Commission (SEC) Jay Clayton has been tasked with overseeing the trial of Tornado Cash developer Roman Storm.
Despite the resurgence of cryptocurrency under United States President Donald Trump’s administration and his supportive stance towards the industry, one individual finds himself caught in the federal government’s crackdown on crypto: Roman Storm, the co-founder of the popular crypto mixing service Tornado Cash.
Roman Storm is scheduled to stand trial in New York on Monday for charges of criminal conspiracy to commit money laundering and evading United States sanctions. Leading the prosecution against Storm is Jay Clayton, a figure who previously served as the chairman of the SEC during Trump’s first term.
Former SEC Chair to lead the prosecution of Roman Storm
Many prominent figures in the crypto industry in the United States have harbored animosity towards former SEC Chair Gary Gensler during the Biden administration. However, it was Jay Clayton who initiated the crackdown on crypto firms during his tenure. Clayton oversaw 57 cases against crypto firms, ICOs, and blockchain-based projects, including a $1.3 billion lawsuit against Ripple for offering unregistered securities.
After leaving the SEC, Clayton returned to practicing law at a New York firm and joined the advisory board of Fireblocks, a crypto custody firm. In April, President Trump appointed Clayton as the US Attorney for the Southern District of New York, where he now oversees high-profile criminal prosecutions, including the case against Roman Storm.
Trump administration could set a precedent for DeFi
The Trump administration’s pursuit of charges against Roman Storm has raised concerns among crypto advocates. A successful prosecution could establish a precedent that targets software developers and potentially harm the American DeFi industry. Storm himself has expressed fears that a conviction could spell the end of DeFi.
Despite these concerns, the Trump DOJ SDNY’s office, under Clayton’s leadership, is pushing forward with the case against Storm. Clayton’s involvement in every pre-trial motion has raised eyebrows, with some motions preventing pro-crypto legal precedents from being discussed at trial.
Storm’s trial is set to commence on Monday in lower Manhattan, presided over by Judge Katherine Failla. Failla previously oversaw the SEC’s battle against Coinbase, which was dismissed earlier this year by the Trump administration.
As the crypto industry watches the outcome of Roman Storm’s trial, the implications for DeFi and software developers remain uncertain. The Trump administration’s approach to prosecuting individuals in the crypto space could have far-reaching consequences for the industry as a whole.