Subject: File No. S7-04-23
From: Mateusz Gutt

Dear Securities and Exchange Commission, I am writing to provide my public comment on the proposed rule "Safeguarding Advisory Client Assets." While I appreciate the efforts to enhance investor protections and address gaps in the custody rule, I have concerns regarding the lack of regulatory coordination with other agencies and the treatment of digital assets or crypto. Firstly, it is essential for the SEC to demonstrate sufficient coordination with other regulatory agencies to avoid fragmented and conflicting regulations. The proposed rules seem to overlook the need for harmonization across different regulatory bodies, potentially causing confusion and inefficiencies for investment advisers and their clients. Operating within a complex regulatory landscape complicates compliance efforts and multiplies compliance costs. It is imperative that the SEC strives for collaboration and coordination with other regulatory agencies, such as the Commodity Futures Trading Commission (CFTC), to establish a comprehensive framework that ensures consistent investor protection without stifling innovation. Moreover, the proposed rules lack clarity when it comes to the treatment of digital assets or crypto. We are currently witnessing a significant transformation in the financial industry driven by digital assets, specifically cryptocurrencies and blockchain technology. However, regulatory uncertainty surrounding these assets poses challenges for investment advisers seeking to navigate this emerging market. The proposed rule should provide clearer guidance on how investment advisers can safeguard digital assets and demonstrate exclusive control over them. This would help both investors and advisers by providing much-needed regulatory certainty and encouraging responsible participation in this evolving asset class. To address these concerns, I recommend the SEC to establish better lines of communication and collaboration with other regulatory agencies. This would facilitate regulatory coordination and lessen the burden on investment advisers who operate in multiple regulatory jurisdictions. Moreover, the SEC should engage in further dialogue with industry stakeholders to gain a deeper understanding of the unique characteristics and challenges associated with digital assets. By working alongside industry participants, the SEC can craft rules that strike the right balance between investor protection and innovation, taking into account the evolving nature of the digital asset market. In conclusion, while I support the SEC's goal of enhancing investor protections through the proposed rule "Safeguarding Advisory Client Assets," I urge the commission to address the concerns regarding the lack of regulatory coordination with other agencies and the treatment of digital assets. As the financial landscape continues to evolve, it is crucial for regulations to evolve as well to adapt to new technologies and market trends. By fostering collaboration and providing clear guidance, the SEC can ensure that its regulatory framework remains effective, efficient, and responsive to the needs of investors and market participants. Thank you for considering my comments. Sincerely, Mateusz Gutt