Oct. 24, 2023
[Your Address] [City, State, ZIP Code] [Date] Securities and Exchange Commission 100 F Street, NE Washington, DC 20549 Subject: Safeguarding Advisory Client Assets - Proposed Rule and Amendments Dear Sir/Madam, I write regarding the proposed rule and amendments on the safeguarding of advisory client assets, as published by the Securities and Exchange Commission (SEC) on [proposal publication date]. While I appreciate the SEC's efforts to enhance investor protections and address the gaps in the custody rule, I believe there are certain aspects of the proposed rules that require further clarity and consideration. Specifically, I would like to express my concerns regarding the lack of clarity in the definition and treatment of digital assets within the proposed rule. The rapid evolution of digital assets, such as cryptocurrencies, has transformed the financial landscape, and it is crucial to provide clear guidance on how these assets should be treated and safeguarded by investment advisers. By failing to define what constitutes a digital asset, the proposed rule introduces confusion and potential misinterpretation. Given the increasing prevalence of digital assets in investment strategies and their unique nature, it is essential for the SEC to provide clear guidelines to ensure investor protection and regulatory compliance. Digital assets present inherent challenges for custody and control due to their decentralized and distributed nature. Without clear guidance, investment advisers may struggle to implement adequate safeguards for these assets, exposing clients to increased risk. By defining digital assets within the proposed rule, the SEC can provide the industry with the necessary framework to ensure investor protections while fostering innovation in the emerging asset class. I commend the SEC for recognizing the need to address the safeguarding of client assets in the advisory industry. However, it is crucial to squarely tackle the issues around digital assets to ensure effective investor protections within this evolving landscape. I strongly urge the SEC to incorporate a comprehensive and unambiguous definition of digital assets in the final rule, considering input from industry experts and stakeholders. I appreciate the opportunity to provide feedback on this proposal. As a concerned individual with a vested interest, I believe it is crucial for the SEC to consider the potential ramifications and ensure that the final rule effectively addresses the challenges posed by digital assets. Thank you for your attention to this matter. I stand ready to provide any further input or clarification to assist the SEC in crafting a robust and effective rule that upholds investor protections in the advisory industry. Sincerely, JP