Mar. 24, 2023
Dear SEC, I am writing to express my opposition to Rule File No. S7-01-23, which proposes to implement Section 27B of the Securities Act of 1933, added by Section 621 of the Dodd-Frank Act. After careful review of the proposed rule, I believe that it will negatively impact individual investors and leave room for manipulative hedge funds to do as they please. Firstly, I strongly oppose any exceptions for "risk-mitigating hedging activities, bona fide market making, and certain liquidity commitments." These exceptions could create loopholes that allow hedge funds to engage in manipulative behavior that could harm individual investors. Furthermore, the proposed exemption for non-reporting companies to register certain securities offerings under the Securities Act, if they are exclusively sold to accredited investors, has significant flaws. This exemption inadequately protects household investors by reducing the information available to them, making it harder for them to make informed investment decisions, potentially leading to losses. Lastly, the proposed rule could be exploited by manipulative hedge funds, who have a history of manipulative behavior in the securities market. By limiting the exemption to accredited investors, hedge funds could create fake accredited investor accounts to conduct manipulative behavior outside of regulatory oversight. In conclusion, I urge the SEC to reconsider the proposed rule File No. S7-01-23 and take necessary measures to protect individual investors from manipulative hedge funds. The proposed exemptions could potentially harm household investors, reduce transparency, and leave room for manipulative behavior, which is not in the best interest of the securities market. Thank you for your consideration. Sincerely, Samuel Cressy