Oct. 22, 2023
----------------------- Carlos Bustillos [123 Address Street] [City, State, ZIP Code] [Date] Securities and Exchange Commission 100 F Street, NE Washington, DC 20549 Re: Safeguarding Advisory Client Assets File Number S7-00-20XX Dear Commissioners, I am writing to provide my public comment on the proposed rule for safeguarding advisory client assets filed by the Securities and Exchange Commission (SEC) on [date]. While I applaud the aim of enhancing investor protections and addressing gaps in the existing custody rule, I have concerns regarding the lack of clarity in the definition of digital assets and the use of poorly defined terms within the proposal. Firstly, the proposal fails to provide clear guidance on what constitutes a digital asset. Terms like platform, software, and ledger are used without proper definition, leaving room for varied interpretations. Without a detailed understanding of these terms, both advisors and clients may face difficulties in accurately assessing their obligations and responsibilities. Furthermore, the definition of terms such as wallet and validator within the proposal does not align with their technical meaning in the context of digital assets. This discrepancy introduces additional confusion and potential misinterpretation of the rule. In order to foster efficient and compliant practices within the industry, it is crucial for the SEC to provide precise definitions that encompass the technical aspects of digital assets. Overall, the lack of clarity in these defined terms may hinder the effective implementation of the proposed rule, leading to potential compliance issues and unintended consequences. As the digital asset landscape continues to evolve rapidly, it is imperative for the SEC to provide comprehensive and clear definitions that adapt to emerging technologies. Failure to do so could hamper investor protection and impede the growth of the advisory industry. In conclusion, I urge the SEC to reconsider the clarity of the definitions used in the proposed rule for safeguarding advisory client assets. By providing precise and comprehensive definitions, the SEC can ensure that both advisors and clients fully understand their obligations and responsibilities in relation to digital assets. This will ultimately foster a more transparent and resilient investment environment. Thank you for considering my concerns. I believe that by working towards a clearer and more inclusive framework, the SEC can truly enhance investor protections and build a foundation for sustainable growth within the advisory industry. Sincerely, Carlos Bustillos