Oct. 22, 2023
Dear Securities and Exchange Commission, I am writing in response to the proposed rule "Safeguarding Advisory Client Assets" and would like to express my concerns and issues regarding its potential impact. While the aim of the rule to enhance investor protections and address gaps in the custody rule is commendable, I believe that certain aspects of the proposal may have unintended consequences that could negatively impact the competitiveness of US companies and hinder innovation, particularly in the rapidly evolving field of digital assets. Firstly, I am concerned that the proposed rule may put US companies at a competitive disadvantage compared to their international counterparts. As the digital asset industry continues to grow and transform modern finance, it is essential that regulatory frameworks provide clarity and allow for innovative solutions to thrive. The lack of a level playing field in terms of regulations and guidelines could potentially lead to capital flight and loss of market share for US companies. Therefore, it is crucial that the proposed rule strikes the right balance between investor protection and fostering innovation in the industry. Regarding digital assets such as cryptocurrencies, their unique characteristics pose challenges for traditional regulatory frameworks. As the rule discusses the application of safeguards to crypto assets, it is essential to ensure that the regulations are tailored to address the specific risks associated with these assets without stifling their potential. Clarity in guidelines and adherence to established principles of regulation will go a long way in building trust and fostering further growth in the digital asset industry. In order to achieve this, it is imperative that the proposed rule provides clear rules and regulations, ensuring that all market participants are subject to the same standards. Inconsistencies and uncertainty in regulations can create an uneven playing field, inhibiting both domestic innovation and the competitiveness of US companies in the global market. Therefore, the rule should strive to establish a fair and transparent regulatory environment for digital assets, providing the industry with the confidence needed to thrive. Furthermore, it is crucial to consider the implications of the proposed rule on the overall competitiveness of US companies in the global market. While investor protection is undoubtedly important, it is equally vital to consider the broader economic impact and weigh the potential costs and benefits of the rule. Striking the right balance between regulatory oversight and the facilitation of capital formation is key to promoting long-term economic growth and ensuring that US companies remain competitive on a global scale. In conclusion, I urge the Securities and Exchange Commission to carefully consider the potential impact of the proposed rule on the competitiveness of US companies, particularly in the context of digital assets. It is vital that the regulations provide clear guidelines while allowing for innovative solutions to thrive. By striking the right balance between investor protection and fostering an environment that supports innovation, the SEC can strengthen the industry and position the United States as a leader in the digital asset space. Thank you for considering my concerns and for providing the opportunity to contribute to the public comment on this important issue. Sincerely, Keweecise Gallaspy Sent from my iPhone