Subject: S7-04-23: Webform Comments from Jonathan
From: Jonathan
Affiliation:

Oct. 28, 2023

I am writing to express my concerns about the potential
collaboration between the SEC and the crypto ecosystem. As a concerned
citizen, I believe it is essential to maintain a clear separation
between regulatory bodies and the rapidly evolving crypto industry.

The proposed custody rule, while aiming to ensure investor protection,
may inadvertently lead to unnecessary intervention in the crypto
space. The decentralized nature of many digital assets often
necessitates a more nuanced understanding of custody, one that might
not align with traditional regulatory frameworks.

Excessive collaboration between the SEC and the crypto industry could
potentially stifle innovation and deter the open, decentralized ethos
that underpins many crypto projects. It is crucial to avoid any
measures that could give rise to an over-regulated environment,
limiting the potential for technological advancement and market
competition.

I encourage all parties involved to approach this issue with caution,
ensuring that any regulatory measures put in place are balanced and
fair. Maintaining a healthy separation between regulators and the
crypto ecosystem would allow for the industry to thrive, fostering
innovation and ensuring a competitive edge for the nation on the
global stage.

Thank you for considering these concerns. I hope my input contributes
to a robust and independent discussion on this matter.