The Senate voted 61-37 to give him the job of heading up the regulator, and Clayton is likely to start work very shortly.

Clayton was most recently a partner with New York law firm Sullivan & Cromwell, and the official announcement referred to his role ‘helping companies navigate complex federal regulations’. He helped online retailer Alibaba stage the largest initial public offering in history, and assisted in the sale of the National Basketball Association's Atlanta Hawks.

However, there has been comment from Democrat politicians over Clayton’s ties to Goldman Sachs and Barclays, both of whom he represented over issues related to the fall-out from the 2008 financial crisis.

Clayton’s wife is currently a wealth manager with Goldman Sachs, but he has indicated she will quit once he becomes SEC chairman. Trump’s choice for Treasury secretary, Steven Mnuchin, is also a Goldman Sachs alumnus.

During his campaign to become president, Trump emphasised his desire to reduce financial regulation, and has said he wants to ease some of the restrictions introduced under the 2010 Dodd-Frank act.

Cindy Fornelli, executive director of the Center for Audit Quality (CAQ), said: ‘The CAQ congratulates Jay Clayton on his confirmation by the US Senate as SEC chairman. Investors have shown strong and enduring confidence in US capital markets, thanks in good part to the SEC's crucial role in capital formation, market oversight, and investor protection.

‘We look forward to building on that strength as we work with Mr. Clayton toward our shared goal of enhancing investor confidence and public trust in our capital markets.’