Dear Securities and Exchange Commission, I am writing to express my concerns and provide feedback regarding the proposed rule "S7-04-23 Safeguarding Advisory Client Assets" by the Securities and Exchange Commission (SEC). While I appreciate the SEC's intention to enhance investor protections and strengthen the custody rule, I believe there are certain areas where the proposed rule may overreach its regulatory authority and encroach on areas that should be regulated by other agencies. One item of concern is the treatment of digital assets, particularly cryptocurrencies, which have emerged as a transformative force in the financial industry. The proposed rule aims to address the application of the custody rule to crypto assets, but given the complex nature of these assets, it is crucial to involve other regulatory bodies that have expertise in this area. The Commodity Futures Trading Commission (CFTC), for example, has been actively involved in regulating cryptocurrencies and could provide valuable insights and coordination in the development of comprehensive regulatory measures. My concern is that the SEC's approach may hinder innovation and stifle the potential benefits that digital assets could bring to the financial system. It is essential to strike a balance between investor protection and fostering an environment that encourages innovation and growth. Collaborative efforts with agencies like the CFTC will ensure a comprehensive and coordinated approach to regulating digital assets, addressing the regulatory uncertainties surrounding them. Additionally, I would like to highlight the issue of regulatory capture within the SEC. It is crucial that the rule-making process remains independent and free from undue influence from industry stakeholders. We must ensure that the interests of investors and the public are prioritized over the interests of any specific industry group or individual. Transparent and robust accountability mechanisms should be put in place to prevent regulatory capture and maintain the integrity of the rule-making process. Furthermore, I have concerns regarding the potential burden of compliance costs that the proposed rule may impose on investment advisers. While the rule aims to enhance investor protections, it is essential to consider the economic impact on advisory firms, especially small entities. The SEC should carefully evaluate the economic effects of the proposed rule and ensure that the benefits outweigh the costs. In conclusion, I believe that while the SEC's proposed rule on safeguarding advisory client assets is well-intentioned, it is crucial to address any potential overreach of regulatory authority and ensure coordination with other regulatory bodies, such as the CFTC, in areas of shared jurisdiction such as digital assets. We must also safeguard against regulatory capture and carefully consider the economic impact of the proposed rule. I appreciate the opportunity to provide this feedback and encourage the SEC to carefully consider these concerns. Thank you for considering my comments. Sincerely, Stan