Oct. 22, 2023
Dear Sir/Madam, I am writing in response to the Securities and Exchange Commission's (SEC) proposal on "Safeguarding Advisory Client Assets." As a concerned citizen, I would like to express my thoughts and reservations regarding certain aspects of the proposed rule. Firstly, I am concerned about the potential overreach of the SEC's regulatory authority, particularly in relation to digital assets or cryptocurrencies. It is undeniable that digital assets, such as cryptocurrencies built on blockchain technology, have significantly transformed the financial landscape. However, the regulatory uncertainties surrounding these assets have posed challenges for both market participants and regulators. While it is important to ensure investor protection and address potential risks associated with digital assets, I worry that the SEC's proposed rule could hinder innovation and stifle growth in this rapidly evolving sector. Excessive regulation, particularly in the absence of clear congressional mandates, may discourage investment and drive away businesses to overseas jurisdictions. This could have a detrimental impact on the future of our nation's financial services and technological advancement. Furthermore, the proposed rule's broad scope raises questions about the jurisdictional boundaries of the SEC's regulatory authority. It is crucial that the SEC remains within its designated mandate and does not encroach upon areas that should be regulated by other governmental bodies. As the digital asset space continues to evolve, it is essential for regulatory agencies to collaborate and establish clear guidelines that avoid regulatory overlap and ensure consistency. I urge the SEC to carefully consider the potential consequences of its proposed rule on digital assets and their associated businesses. Instead of stifling innovation and driving assets overseas, the SEC should work towards fostering an environment that encourages responsible innovation, while protecting investors and maintaining the integrity of our financial markets. In conclusion, I appreciate the SEC's efforts to enhance investor protections and address gaps in the custody rule through the proposed rule on "Safeguarding Advisory Client Assets." However, I believe there is a need for a more nuanced approach, particularly in the context of digital assets and their evolving regulatory landscape. Striking the right balance between regulation and innovation is crucial to ensure the long-term growth and competitiveness of our nation's financial services. Thank you for considering my comment on this important matter. Sincerely, Yamileth Valle Yamileth E Valle