Mar. 15, 2023
To whom it may concern, I am writing today to comment on and express my grave concern regarding the proposed so called exceptions for "risk-mitigating hedging activities, bona fide market making & certain liquidity commitments". The proposed rule exempts non-reporting companies from registering certain securities offerings under the Securities Act, if they are exclusively sold to accredited investors. However, this exemption has significant flaws. The proposed rule inadequately protects household investors by reducing the information available to them. This lack of transparency makes it harder for them to make informed investment decisions, potentially leading to losses. The proposed rule could be exploited by manipulative hedge funds. These funds have a history of manipulative behavior in the securities market, and the exemption would offer them a new opportunity to engage in such practices. By limiting the exemption to accredited investors, hedge funds could create fake accredited investor accounts to conduct manipulative behavior outside of regulatory oversight. In the simplest terms possible it seems absolutely ridiculous that there could be exemptions for the market makers who are the very party this rule is meant to protect household investors from! That’s like saying there’s an exception to the criminality of murder for gangsters and cartel members. Those are the criminals your tule is supposed to protect from. How can it have any effect if it doesn’t apply to the parties it was meant to impact. Sincerely, Jacob E. Proaño, DO