Oct. 22, 2023
SEC comment tracking number: XXXXXXX Dear Securities and Exchange Commission, I am writing to offer my concerns and commentary on the proposed rule "Safeguarding Advisory Client Assets" (File No. 333-XXXXX). My name is Mark Borham, and I have a vested interest in safeguarding the rights of investors and promoting fair and transparent regulations in the financial industry. While I commend the SEC for addressing the need to enhance investor protections and close the gaps in the current custody rule, there are certain aspects of the proposed rule that raise significant concerns regarding the potential negative impact on investor access to digital assets. One area of concern lies in the poorly defined terms used throughout the proposed regulation. Terms such as "platform," "software," and "ledger" have been left undefined, making their interpretation susceptible to multiple understandings. Additionally, the definition of terms like "wallet" and "validator" deviates from their technical meanings, causing confusion and potential unintended consequences. Clarity in terminology is crucial to ensuring that investors and advisers can navigate these rules without undue ambiguity. Furthermore, these imprecise definitions could inadvertently restrict investor access to digital assets, limiting their ability to participate fully in this emerging asset class. As technology rapidly evolves and innovative financial instruments emerge, it is imperative that regulatory frameworks keep pace without impeding market opportunities. Rather than stifling investor access, the SEC should consider a more balanced approach that encourages responsible innovation while still safeguarding investor interests. In addition to the issues mentioned above, I would like to take this opportunity to ask if there are any other areas of concern regarding the proposed rule or if there are any general questions that the SEC would like the public to address as part of this comment submission process. Thank you for considering my comments and for your commitment to protecting investors and promoting robust regulatory standards. I trust that you will carefully evaluate the concerns raised in this comment, as well as those of other interested parties, to shape a final rule that strikes a fair balance between investor protection and innovative growth in the financial sector. Sincerely, Mark Borham Sent from Yahoo Mail on Android