Oct. 22, 2023
? Dear Securities and Exchange Commission, I am writing to express my concerns regarding the proposed rule on "Safeguarding Advisory Client Assets." While I acknowledge the importance of enhancing investor protections and addressing gaps in the custody rule, I believe there are aspects of the proposed rule that may exceed the SEC's regulatory authority and encroach on areas that should be regulated by other agencies. Specifically, I would like to focus on the treatment of digital assets or crypto as outlined in the proposed rule. The rapid rise of digital assets, such as cryptocurrency, has transformed the financial landscape and introduced new challenges for regulators. While it is crucial to establish safeguards and ensure investor protections in this evolving space, there are regulatory uncertainties that need to be addressed. One concern that I have is the recent charges against Richard Heart and the potential impact on average investors. The SEC's proposed rule should consider the unique characteristics of digital assets and the challenges surrounding regulation in this space. It is essential to strike a balance between protecting investors and fostering innovation, as overly burdensome regulation may stifle technological advancements and hinder the growth of digital assets. I believe that a more nuanced approach, taking into account the recommendations and insights from experts in the crypto industry, would result in a rule that effectively safeguards client assets while providing a supportive environment for innovation and economic growth. Regulatory authorities should collaborate with other agencies and stakeholders to establish comprehensive guidelines that address the specific complexities of digital assets. In conclusion, I respectfully urge the Securities and Exchange Commission to carefully consider potential overreach of regulatory authority in the proposed rule and to engage with industry experts to develop a fair and balanced framework for the treatment of digital assets. By doing so, we can ensure investor protection without stifling innovation and growth in this transformative field. Thank you for considering my comments and have a great day. Sincerely, Jeff Auger