Oct. 14, 2023
> ?As a concerned citizen and advocate for the cryptocurrency and digital asset community, I strongly oppose the proposal "Safeguarding Advisory Client Assets; Reopening of Comment Period" by the Securities and Exchange Commission (SEC). While I understand the importance of investor protections, I believe that the SEC is overreaching its authority in regulating the cryptocurrency space. > First and foremost, it is crucial to recognize that cryptocurrencies and digital assets operate in a unique and rapidly evolving technological landscape. The SEC's attempt to apply traditional securities regulations to these innovative assets is misguided and stifles innovation. Cryptocurrencies are fundamentally different from traditional securities, as they often serve as utility tokens or mediums of exchange rather than investment contracts. Therefore, subjecting them to the same regulatory framework is not only unnecessary but also counterproductive to the growth and development of this emerging industry. > Furthermore, it is important to note that existing laws already provide a regulatory framework for cryptocurrencies and digital assets. The SEC's jurisdiction should be limited to cases where these assets are clearly deemed securities under the Howey Test. The Howey Test, established by the Supreme Court, defines an investment contract as an investment of money in a common enterprise with an expectation of profits solely from the efforts of others. Many cryptocurrencies do not. > > Sent from my iPhone