Apr. 19, 2023
April 19, 2023 Dear Securities and Exchange Commission (SEC), I am writing to express my profound concerns about the current direction of proposed regulations and legislation concerning cryptocurrencies and blockchain technology. While I appreciate your efforts to safeguard consumers and investors, I fear that the approach being taken may have unintended consequences that could impede innovation, drive crypto out of America, and into the hands of other countries, particularly China. The crypto industry has been experiencing remarkable growth and evolution in recent years, becoming a significant driver of innovation, investment, and job creation in the United States. However, the proposed \"Exchange\" bill and recent statements from the SEC have raised red flags within the crypto community, which perceives them as a deterrent to the industry's progress. Instead of supporting and guiding the industry, waging war on crypto may lead to undesired outcomes. Crypto is a global phenomenon, and if the U.S. creates a regulatory environment that is perceived as hostile, it could drive away innovators, investors, and businesses to more crypto-friendly jurisdictions, harming the U.S. economy and jeopardizing our technological leadership. Additionally, the lack of clarity and inconsistent regulatory approach from the SEC has generated confusion and uncertainty for crypto businesses. This confusion makes it challenging for legitimate players to navigate the regulatory framework, undermining trust and confidence necessary for growth and innovation. As a leader, gaining the trust and confidence of the people you seek to protect is critical. The current approach, which appears to be hostile to crypto, may not achieve this and may further erode trust and confidence in the regulatory framework. I urge you to consider a more balanced approach that encourages innovation, investment, and responsible practices within the crypto industry while promoting consumer protection. I firmly believe that the U.S. has the potential to be a global leader in the crypto industry, but it requires smart regulation that balances consumer protection and innovation. It is essential to work collaboratively with industry stakeholders to develop regulations that address concerns while fostering the potential of this transformative technology. Thank you for your attention to this critical matter. I urge you to consider the long-term implications of the proposed regulations and legislation and work towards a regulatory approach that encourages innovation and sustains America's competitiveness in the global crypto landscape. Sincerely, James D. Davis