Oct. 22, 2023
Dear Securities and Exchange Commission, I am writing this to express my concern regarding the proposed rule on "Safeguarding Advisory Client Assets." While I appreciate the SEC's efforts to enhance investor protections and address gaps in the custody rule, I think it is being conducted incorrectly. The proposed rule lacks clarity on custody requirements for digital assets, particularly cryptocurrencies. Digital assets, such as cryptocurrencies, have emerged as a transformational force in the financial industry, leveraging blockchain technology to revolutionize traditional finance. However, the regulatory landscape surrounding these assets remains uncertain and unclear. This is drastically reducing mainstream adoption and hindering participation… The proposed rule should provide clear guidelines on custody requirements for digital assets. Without such clarity, market participants are left facing significant uncertainties, impacting their ability to confidently engage with these innovative assets. Additionally, a lack of clear guidance may give rise to a fragmented regulatory environment, posing challenges for both investors and investment advisers. By providing precise custody requirements for digital assets, the SEC can offer much-needed clarity and establish a strong foundation for the future of the digital asset space. This would contribute to the growth of this emerging sector while ensuring investor protection. I urge the SEC to prioritize the establishment of clear and comprehensive custody requirements for digital assets. This will help create a robust regulatory framework that fosters innovation, facilitates market transparency, and protects investors' interests. There is no failure without attempt. Thank you for considering my concerns. I believe that through openness, dialogue, and collaboration with industry stakeholders, we can achieve a balanced, effective, and future-oriented regulatory framework for digital assets. Sincerely, Steven Oakes