Dear Sir or Madam, I am writing to express my concerns regarding the "Safeguarding Advisory Client Assets" proposal by the Securities and Exchange Commission (SEC). While I appreciate the SEC's effort to enhance investor protections, I believe that certain aspects of the proposed rule may exceed the agency's regulatory authority and encroach on areas that should be regulated by other agencies. One area of concern is the treatment of digital assets or cryptocurrencies. As the world becomes increasingly digitized, digital assets such as cryptocurrencies have emerged as important investment vehicles, transforming the financial landscape. However, regulatory uncertainties surrounding these assets pose significant challenges for market participants. It is important to note that the regulatory landscape for digital assets is still developing, with multiple agencies overseeing different aspects of this innovative technology. As such, the SEC's proposed rule should be mindful of potential overlaps with other regulatory frameworks. A one-size-fits-all approach may not be appropriate for the unique characteristics of these assets. Additionally, the regulatory requirements outlined in the proposed rule may impose substantial compliance costs on investment advisers and qualified custodians. These costs could have unintended consequences, such as hindering competition or discouraging innovation in the industry. It is crucial that the SEC carefully considers the economic impact of these requirements, especially on small entities that may already face resource constraints. I recommend that the SEC collaborate with other relevant regulatory bodies to establish clear guidelines and ensure consistent and comprehensive oversight of digital assets. This collaboration would not only address regulatory uncertainties but also foster innovation and development in the emerging digital asset market. In conclusion, while I appreciate the SEC's intention to enhance investor protection through the proposed rule, I urge the agency to consider potential overlaps with other regulatory bodies and the unique characteristics of digital assets. Balancing investor protection with industry growth and innovation is crucial for the long-term success of the market. Thank you for considering my concerns. Sincerely, Anonymous