Oct. 14, 2023
S7-04-23 To whom it may concern, In opposition to the proposed rule File Number S7–04–23. Please see my following justification. As an individual who is deeply concerned about the proposed legislation by the SEC regarding cryptocurrency and digital assets, I firmly believe that it represents an overreach of regulatory authority. While it is important to protect investors and ensure the integrity of the financial markets, it is equally important to strike a balance that allows for innovation and growth in emerging technologies. One of the main issues with the proposed legislation is its lack of clarity and specificity. Cryptocurrency and digital assets are a rapidly evolving field, and it is crucial for regulations to be adaptable and flexible to accommodate new developments. The proposed rules, however, seem to be rigid and fail to consider the unique characteristics of these assets. This could stifle innovation and hinder the growth of the industry. Furthermore, the proposed legislation imposes burdensome requirements on businesses operating in the cryptocurrency space. These requirements include additional reporting obligations, compliance costs, and potential penalties for non-compliance. Such burdensome regulations could disproportionately affect small businesses and startups, limiting their ability to compete and thrive in the market. It is also worth noting that existing laws already provide a framework for regulating cryptocurrency and digital assets. For example, the Securities Act of 1933 and the Securities Exchange Act of 1934 already cover securities offerings and trading activities, including the SEC should focus on enforcing existing laws and providing clear guidance to market participants. This approach would strike a balance between investor protection and fostering innovation in the cryptocurrency and digital asset space. It is crucial for regulators to adapt to the rapidly evolving nature of these technologies and create a regulatory framework that encourages responsible innovation and growth. By doing so, we can ensure that the United States remains at the forefront of this transformative industry. Additionally, it is important to consider the global nature of cryptocurrency and digital assets. These technologies operate on a decentralized network that transcends national borders. Imposing excessive regulations on a national level could put U.S. businesses at a disadvantage compared to their international counterparts. It is crucial for regulators to collaborate with international counterparts to develop consistent and harmonized regulations that promote innovation while safeguarding investor interests. Furthermore, the proposed legislation fails to address the potential benefits of cryptocurrency and digital assets in promoting financial inclusion. These technologies have the potential to provide access to financial services for the unbanked and underbanked populations, both domestically and globally. By imposing burdensome regulations, the SEC could hinder the ability of these technologies to reach underserved communities and promote financial empowerment. In conclusion, the proposed legislation by the SEC regarding cryptocurrency and digital assets represents an overreach of regulatory authority. The lack of clarity, failure to recognize the potential benefits, and the potential disadvantage to U.S. businesses in the global market are significant concerns. Instead of imposing new regulations, the SEC should focus on enforcing existing laws and providing clear guidance to market participants. This approach would strike a balance between investor protection and fostering innovation in the cryptocurrency and digital asset space. Additionally, regulators should collaborate internationally to develop consistent and harmonized regulations that promote innovation while safeguarding investor interests. It is crucial to consider the transformative potential of these technologies and ensure that the United States remains at the forefront of this industry. Furthermore, the SEC should recognize the potential benefits of cryptocurrency and digital assets in promoting financial inclusion and empowerment for underserved communities. By imposing burdensome regulations, the SEC could hinder the ability of these technologies to reach those who need them the most. Regards, Sent with Proton Mail secure email.