Oct. 14, 2023
As a concerned citizen and advocate for the cryptocurrency and digital asset community, I strongly oppose the proposal "Safeguarding Advisory Client Assets; Reopening of Comment Period" by the Securities and Exchange Commission (SEC). While I understand the importance of investor protections, I believe that the SEC is overreaching in its regulation of cryptocurrency and digital assets, which could stifle innovation and hinder the growth of this emerging industry. Firstly, it is crucial to recognize that cryptocurrencies and digital assets operate in a unique and decentralized manner. They are not subject to the same traditional custodial requirements as traditional financial assets. The SEC's attempt to apply the current custody rule, as outlined in 17 CFR 275.206(4)–2, to these assets is misguided and fails to acknowledge their inherent differences. This approach could impose unnecessary burdens on market participants and hinder the development of new technologies. Furthermore, the SEC's proposal fails to consider existing laws that already provide regulatory oversight for cryptocurrencies and digital assets. For instance, the Financial Crimes Enforcement Network (FinCEN) has established robust anti-money laundering (AML) and know-your-customer (KYC) regulations for virtual currency businesses. These regulations ensure that illicit activities are mitigated and that investors are Tervitades/ Best regards, Lorenz Juhanson