Oct. 30, 2023
Dear Securities and Exchange Commission, I am writing this public comment to express my concerns regarding the "Safeguarding Advisory Client Assets" proposal. While I appreciate efforts to enhance investor protections and address gaps in the custody rule, I have identified several areas within the proposed rule that require further clarification and consideration. Specifically, my concern lies in the lack of clarity surrounding the definition of digital assets. The proposal fails to provide specific guidance on what constitutes a digital asset, leading to potential confusion and misinterpretation. Given the evolving nature of digital assets, such as cryptocurrencies built on blockchain technology, it is crucial to establish a clear and comprehensive definition to ensure effective regulation. Furthermore, I believe the proposed rule may face legal challenges due to inconsistencies or conflicts with existing laws, regulations, or constitutional provisions. It is essential to carefully consider these ramifications to avoid undue burden or potential violations of constitutional rights for investment advisers and their clients. In light of the legal challenges that may arise, it is important to thoroughly analyze the proposed rule in terms of its constitutionality and compatibility with existing laws. Any contradictions or conflicts must be addressed to ensure compliance and avoid unnecessary litigation, which may negatively impact the investment advisory industry. I strongly urge the Securities and Exchange Commission to revise the proposed rule to provide clear and unambiguous guidance on the definition of digital assets. This will help investment advisers to accurately determine which assets fall under the regulatory framework and enable them to operate within the boundaries of the law effectively. Additionally, I recommend a rigorous examination of the proposed rule to address any legal inconsistencies or conflicts. This will enhance the credibility and legal standing of the rule, mitigating the risk of potential challenges and allowing for a harmonious application within the existing legal framework. In conclusion, it is crucial for the Securities and Exchange Commission to address the lack of clarity in defining digital assets within the "Safeguarding Advisory Client Assets" proposal. By doing so, the Commission can provide guidance that aligns with the evolving landscape of digital assets and avoids legal inconsistencies or conflicts. I appreciate your consideration of these concerns and the opportunity to provide input on this important matter. Sincerely, Ben