The Southern District of New York, arguably the most consequential federal prosecutor’s office in the United States, is about to get its third leader in roughly two years. James McDonald, a litigation partner at Sullivan & Cromwell and Trump’s personal lawyer, is set to replace Jay Clayton as US Attorney for the Manhattan-based district.
The move comes after President Trump announced on June 11, 2026, his plans to nominate Clayton as Director of National Intelligence. Clayton, who was appointed acting US Attorney in April 2025 and confirmed by judges in August 2025, would be leaving behind one of the most high-profile law enforcement positions in the country.
Why the SDNY matters to crypto and finance
The SDNY prosecuted Sam Bankman-Fried. It handled the Terraform Labs case. It has been the tip of the spear for federal crypto enforcement for years.
McDonald’s background makes the appointment particularly interesting. He’s a former SDNY assistant US attorney himself. He’s also a litigation partner at Sullivan & Cromwell, a firm that served as counsel to the FTX bankruptcy estate.
