Oct. 30, 2023
Dear Securities and Exchange Commission, I am writing to express my concerns regarding the proposed rule "Safeguarding Advisory Client Assets" and its potential negative impact on blockchain innovation. While I understand the need for investor protection and the safeguarding of client assets, I believe that the current proposals may hinder the growth and development of blockchain technology and its associated digital assets, including cryptocurrencies. Digital assets, such as cryptocurrencies, have emerged as a transformative force in the financial industry, offering decentralized and secure alternatives to traditional financial systems. Blockchain technology, the underlying technology behind these digital assets, has the potential to revolutionize various sectors, including finance, by enabling peer-to-peer transactions, eliminating intermediaries, and enhancing transparency. However, the proposed regulations raise concerns about the liquidity and stability of digital asset markets, particularly during times of economic stress or volatility. As the regulations aim to address gaps in the custody rule, it is crucial to avoid imposing excessive regulatory burdens and impeding innovation in the blockchain space. I urge the Securities and Exchange Commission to undertake further analysis of the potential risks associated with these proposed regulations and consider measures to mitigate them. It is important to strike a balance between investor protection and fostering an environment that encourages blockchain innovation. Overregulation could stifle technological advancements and hinder the United States' position as a leader in technological innovation. I acknowledge the need for regulatory oversight to protect investors and maintain market integrity. However, I believe it is essential to adopt a nuanced approach when regulating digital assets, recognizing the unique characteristics and benefits they offer. Striking the right balance will facilitate innovation while safeguarding the interests of investors. In conclusion, I appreciate the Securities and Exchange Commission's efforts to enhance investor protection through the proposed rule. However, I urge you to carefully consider the potential negative impact on blockchain innovation, particularly with regards to digital assets. It is crucial to conduct a comprehensive analysis of the risks and benefits associated with these regulations and ensure that any measures adopted promote technological advancement without impeding progress or stifling innovation. Thank you for considering my comments. I hope that you will take into account the concerns raised regarding the potential impact on blockchain innovation and digital asset markets. I trust that the Securities and Exchange Commission will strike the right balance between investor protection and fostering an environment conducive to innovation. Sincerely, Donna Porteous -- Donna Porteous Co-Owner and Business Development Director Grant Porteous Coaching