Oct. 30, 2023
Dear Sir/Madam, I feel compelled to raise some important concerns regarding the Securities and Exchange Commission's (SEC) proposed rule titled "Safeguarding Advisory Client Assets." While I understand the aim of enhancing investor protections and addressing gaps in the custody rule, I must express my unease about the potential overreach of regulatory authority and the potential negative impact on the competitiveness of the U.S. market, particularly in relation to digital assets. It is no secret that digital assets, such as cryptocurrencies, have revolutionized the financial landscape by harnessing the power of blockchain technology. However, the uncertain regulatory environment surrounding digital assets has created significant obstacles. The lack of global consensus on the appropriate regulatory framework for these assets has resulted in fragmented and inconsistent approaches across jurisdictions. The proposed rule in question, particularly in its application to digital assets, raises concerns about regulatory overreach. It is important for the SEC to reflect on its core mandate of securities regulation and carefully consider whether the proposed rule extends beyond its regulatory authority, potentially encroaching on areas that should be overseen by agencies specializing in digital assets. Striking a balance between protecting investors and fostering innovation and competition in the U.S. market is of utmost importance. Therefore, I respectfully request that the SEC undertakes a thorough analysis of the potential impact of these proposed regulations on the competitiveness of the U.S. market, in comparison to global counterparts. This analysis should take into account the various regulatory frameworks around the world. It is crucial to promote consistency and harmonization across jurisdictions, enabling U.S. businesses to remain competitive on the international stage while upholding adequate investor protections. Moreover, I would like to stress the significance of conducting comprehensive and inclusive public comment periods throughout the rulemaking process. This ensures that all stakeholders have a meaningful opportunity to provide input and voice their concerns, fostering a more balanced and effective regulatory environment. Thank you for taking my comments into consideration and recognizing the importance of thoughtful and measured regulation in the ever-evolving landscape of digital assets. Sincerely, Ben