The newly established digital asset arm of hedge fund One River Financial is adding three Washington veterans as regulatory advisors, including Jay Clayton, the former head of the Securities and Exchange Commission (SEC).
One River first took steps into crypto last year, when it bought $600 million in crypto and partnered with Brevan Howard Asset Management founder Alan Howard. That led to the establishment of One River's crypto-focused subsidiary, One River Digital Asset Management. CEO Eric Peters said at the time the firm was committed to holding about $1 billion in bitcoin and ether by early 2021.
Part of that pivot involved establishing a regulatory-focused council that now includes the former SEC chair.
Clayton stepped down as SEC chair in November of last year, staying on as a commissioner until his final departure December. His term was set to expire in June of this year.
At the time of his departure, Clayton cited the transition of power as his main impetus for leaving. At the time, he did not indicate what his next moves would be. Now, he has rejoined law firm Sullivan & Cromwell as a senior policy advisor and has resumed teaching at the University of Pennsylvania Carey Law School as an adjunct professor.
Clayton is joined by Kevin Hassett, a former senior advisor to President Donald Trump and Chairman of the Trump's White House Council of Economic Advisers. John Orsazag, a policy advisor to President Bill Clinton's National Economic Council, rounds out the third seat of the advisory group. Together, the three said in a statement that they were impressed by One River's "willingness to hear our varying views on the digitization of our monetary, banking and capital markets ecosystem and One River's commitment to transparency."
The advisory group will help One River navigate existing policy issues, according to a statement from Peters, although it's unclear if that means they'll directly interface with current regulators.
"The One River Academic and Regulatory Advisory Council will help us consider how these new digital systems and the investment opportunities they present will best fit within existing policy, while also helping us think through how to advance these frameworks in ways that ensure the US continues to lead the world in financial innovation and asset management."