Mar. 21, 2023
Good Afternoon, I would like to comment on the proposed exceptions to the above rule being granted to market makers. I believe that implementation of Section 27B of the Securities Act of 1933, a provision added by Section 621 of the Dodd-Frank Act, will negatively harm individual investors, and allow manipulative market makers and hedge funds to do as they please with no regard to conflicts of interest. I do not want any exceptions for risk mitigating hedging activities, bona fide market making, or 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. It inadequately protects household investors by reducing information available to them, thus leading them to make investment decisions that are more likely to be a loss. The most concerning aspect, is that the rule can easily be used by manipulative hedge funds to do nefarious activities. There is a huge conflict of interest when market makers are allowed to own hedge funds, and there is a long history of penalties and manipulative behavior from such funds. By limiting the exemption to accredited investors, hedge funds could create fake accredited investor accounts to conduct manipulative behavior outside of regulatory oversight. Thank you very much for your time. Ryan Bermel, Scientist New Mexico Resident