Oct. 25, 2023
Public Comment: Dear Securities and Exchange Commission, I am writing to express my concerns regarding the proposed rule "Safeguarding Advisory Client Assets." While I understand that the intention behind the rule is to enhance investor protections, there are several aspects that I believe need further consideration. One of my primary concerns pertains to the impact of the proposed rules on digital assets or cryptocurrencies. As we are witnessing a rapid transformation in the financial industry through the emergence of decentralized digital currencies, it is crucial that regulations support innovation and growth rather than hinder it. By imposing burdensome requirements on the custody and safeguarding of digital assets, the proposed rule may inadvertently stifle market liquidity for these assets. This could make it more difficult for investors to buy and sell digital assets, ultimately restricting their ability to participate in this evolving space. Furthermore, there are potential infringements on constitutional rights with this regulation. It appears to be an overreach of authority that could limit the freedom of investors to participate in the market. The proposed rule's stringent requirements seem to disregard the basic rights that individuals have to freely engage in investments of their choice. It is essential that any regulations put forth by the SEC strike a balance between protecting investors and allowing for market freedom. As the SEC seeks to enhance transparency and investor protection, it is crucial that the proposed rule be carefully crafted to address the unique characteristics of digital assets. Rather than impeding their growth, the SEC should explore alternative approaches that enable innovation while still safeguarding investors. It is vital to foster an environment where digital assets can thrive, creating opportunities for both investors and entrepreneurs alike. In conclusion, I urge the Securities and Exchange Commission to reconsider the potential negative impact on market liquidity for digital assets and to carefully evaluate the implications of the proposed rules on constitutional rights. By taking into account these concerns, the SEC will be better positioned to create a regulatory framework that promotes innovation, safeguards investors, and fosters a thriving digital asset ecosystem. Thank you for your attention to these important matters. Sincerely, Rio deJarnett