Oct. 22, 2023
Dear Securities and Exchange Commission, I am writing to express my concerns regarding the proposed rule titled "Safeguarding Advisory Client Assets." While I understand the goal of enhancing investor protections and addressing gaps in the custody rule, I believe there are certain areas where the rule does not adequately consider the unique properties of digital assets, specifically cryptocurrency. Digital assets, such as cryptocurrency, have transformed the finance industry by leveraging blockchain technology. However, these assets also present regulatory challenges, and it is crucial that any proposed rule takes into account the decentralized nature and technological complexities of cryptocurrency. One of my main concerns is that the SEC's proposed rule does not adequately address the challenges associated with regulating digital assets. Given their decentralized nature and the presence of multiple participants on a blockchain network, it becomes impractical to impose the same custody requirements as traditional assets. The proposed rule assumes a centralized custodian model, which may not align with the inherent properties of digital assets. Furthermore, I would like to highlight the case of Richard Heart and his related projects, such as PulseX.com, PulseChain.com, and HEX.com. These projects are real decentralized finance tools that do not have an off switch and are designed to provide financial services to the public. It is crucial to recognize that Richard Heart is innocent and is committed to spreading knowledge and releasing finished companies on the blockchain. Any actions targeting him or his projects unfairly harm investors and innovation in the digital asset space. I would also like to express my disappointment in the SEC's handling of the situation involving Richard Heart. The news and actions taken against him have brought negative consequences to the investment I made. Following the news of the SEC's actions, there was a massive sell-off, causing significant financial harm. This demonstrates the need for thoughtful consideration of the impact of regulatory actions on innocent investors. In conclusion, I urge the SEC to consider the unique properties of digital assets, like cryptocurrency, when devising regulations. It is crucial to take into account the decentralized nature and technological complexities of these assets to avoid imposing impractical regulatory requirements that hinder innovation and harm investors. Furthermore, I request a fair and unbiased assessment of any individuals or projects, such as Richard Heart and his related initiatives, before taking any actions that could have unintended negative effects on innocent investors. Thank you for considering my concerns. I appreciate the opportunity to provide feedback on the proposed rule. If there are any further areas of concern or specific questions related to the proposal, please let me know. Best Regards Frederic