Oct. 26, 2023
William Kinney [REDACED] June 30, 2023 Securities and Exchange Commission 100 F Street NE Washington, DC 20549 Subject: Safeguarding Advisory Client Assets – Public Comment Dear Sir/Madam, I am writing to provide my public comment on the Securities and Exchange Commission's proposal regarding the safeguarding of client assets by investment advisers. While I appreciate the SEC's efforts to enhance investor protections and address gaps in the custody rule, I am disappointed with the lack of clarity in defining digital assets and its potential implications for the industry. It is concerning that the proposed rule fails to offer clear guidance on what constitutes a digital asset. In this era of transformative financial technologies like cryptocurrencies built on blockchain, it is crucial to have a comprehensive understanding of these assets. Without a clear definition, there is a risk of confusion and misinterpretation among investment advisers, thereby thwarting regulatory compliance initiatives. I would like to respectfully request the SEC to provide an unambiguous and concise definition of "digital asset" within the proposed rule. This would assist both investment advisers and regulators in effectively navigating the complexities of digital assets and provide much-needed certainty to market participants. Furthermore, it would be highly beneficial if the SEC could provide specific examples of situations where a person or entity might meet the definition of a "digital asset broker." By offering illustrative scenarios, the SEC can further aid industry participants in comprehending their obligations under the proposed rule. This step will ensure consistency in interpretation and compliance, ultimately bolstering investor protection. Digital assets, including cryptocurrencies, present unique challenges due to their technological nature and global reach. Many aspects of these assets, such as custody and control, drastically differ from traditional financial instruments. Therefore, a comprehensive and unambiguous definition of digital assets is of utmost importance to avoid unintended consequences that may hamper innovation and hinder market participants' ability to provide necessary services. In conclusion, I want to express my gratitude for the SEC's undertaking in addressing the safeguarding of advisory client assets. Nonetheless, I beseech the commission to prioritize providing clarity in defining digital assets, including cryptocurrencies, within the proposed rule. This will foster transparency, promote compliance, and enable the industry to adeptly adapt to the evolving digital asset landscape while ensuring investor protection. Thank you for considering my concerns. I sincerely hope that the SEC will demonstrate continued commitment to improving investor protections and effectively address the challenges and uncertainties surrounding digital assets. Sincerely, William Kinney Sent from my iPad