Oct. 17, 2023
Hadi Morrow Tuesday, October 17 2023 Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549–1090. Re: Comment on File Number S7–04–23 – Proposed Rule on Safeguarding Advisory Client Assets Dear Secretary, I am writing to voice my strong opposition to the proposed rule identified as 17 CFR 275.223–1 under the Advisers Act, commonly known as the "safeguarding rule." As an individual deeply engaged and invested in the world of digital assets and blockchain technology, I am profoundly alarmed by what seems to be an overreach by the Securities and Exchange Commission (SEC) regarding this issue. First and foremost, I wish to emphasize that while the SEC's mission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation, the proposed rule seems to be doing the exact opposite. The Commission's aggressive stance on innovative financial products, particularly in the realm of cryptocurrency, is not only stifling the growth of a burgeoning industry but is also denying millions of Americans the opportunity to participate in transformative technological advancements. In my own experience, I fell victim to a phishing attack, resulting in the loss of thousands of dollars. Despite reaching out to the appropriate channels, I received no meaningful support or intervention from the SEC. This stands in stark contrast to the Commission's approach towards legitimate crypto projects, wherein it appears to be wielding its power in a manner that jeopardizes not just individual holdings but also the very foundation of a revolutionary industry. It is disheartening to see the SEC, under the leadership of Chairman Gary Gensler, adopt an aggressive posture towards cryptocurrency and blockchain technologies. While Mr. Gensler's academic credentials in the field of blockchain are undeniable, the policies he has overseen have arguably caused more harm than good. By inhibiting innovation and driving entrepreneurs and developers to seek more favorable regulatory environments overseas, we risk the United States losing its edge in the global technology race. This not only diminishes our nation's standing on the world stage but also undermines our economic potential in the years to come. The world is evolving, and as with the advent of the internet, we are at the precipice of another technological revolution. Rather than placing restrictive barriers, it is the duty of regulatory bodies like the SEC to facilitate an environment of understanding, collaboration, and growth. In conclusion, I urge the SEC to reconsider its stance on this proposed rule and, more broadly, on its approach to digital assets and blockchain technology. The future of finance is unfolding, and it is paramount that the United States not only participate but lead. The actions and decisions of the Commission today will have lasting ramifications for generations to come. I trust that the SEC will act judiciously and in the best interests of the American people. Thank you for your attention to this matter. I am available for further discussion or clarification if deemed necessary. Sincerely, Hadi Morrow