Oct. 29, 2023
Subject: Public Comment on "Safeguarding Advisory Client Assets" Proposal (File No. S7–02–22) Dear Sir/Madam, I am writing to provide my public comment on the proposed rule regarding the safeguarding of advisory client assets. As an investor and someone who has closely followed the cryptocurrency market, I have several concerns and suggestions that I believe will improve the effectiveness and fairness of this proposed rule. Firstly, I would like to address the issue of the lack of clarity on the definition of digital assets in the proposal. It is essential that the Securities and Exchange Commission (SEC) provides clear guidance in this area to avoid confusion and potential misinterpretation. Without clear definitions, market participants might face difficulties in complying with the rule, leading to inadvertent violations. I strongly urge the SEC to provide comprehensive and unequivocal definitions for digital assets to ensure regulatory clarity and foster confidence in the market. Another concern that I would like to bring to your attention is the inappropriate actions of the SEC against Richard Heart, XRP and the many other cryptocurrencies and their founders and their impact on investor confidence. The case involving Richard Heart was perceived by many as a blatant example of market manipulation and fraud on the part of the SEC. These actions had a detrimental effect on the cryptocurrency markets in 2022/2023, contributing to further market instability. As a non-US citizen, I am deeply concerned with the ability of US governing bodies to negatively impact global investments based on personal grievances and without transparent guidance. Moreover, the perceived favouritism shown by Gary Gensler, the Chairman of the SEC, and a significant number of US politicians towards individuals associated with crypto scams is deeply troubling. The apparent friendship, collaboration, and profit-sharing with crypto scammers like Sam Bankman-Fried raise questions about the integrity of the regulatory process and the fairness of the SEC's actions. It is essential that regulatory bodies maintain a level playing field, uphold ethical standards, and demonstrate impartiality in their approach to effectively protect investors. In conclusion, I urge the SEC to address the concerns raised in this public comment and carefully consider the impact of its proposed rules on market participants both inside and outside the United States. Clarity in defining digital assets and unbiased regulatory actions are necessary steps toward fostering a fair and transparent cryptocurrency market that protects investors and encourages innovation. Thank you for the opportunity to provide my input on this important matter. I believe that a balanced and well-thought-out regulation, taking into account the broader implications and diverse perspectives, will pave the way for a thriving and globally competitive cryptocurrency industry. Sincerely, Paddy Baines