Oct. 30, 2023
Dear Securities and Exchange Commission, I am writing to provide my public comment. While I appreciate the Commission's efforts to enhance investor protections, I have concerns regarding potential overreach of regulatory authority, the paramount importance of privacy, and the undue burden placed on certain aspects of the cryptocurrency market. Firstly, I believe it is crucial to consider the potential overreach of regulatory authority in this proposed rule. It is important to ensure that regulatory oversight remains within the appropriate jurisdiction and does not encroach upon areas that should be regulated by other agencies. As the SEC enhances investor protections, it must also ensure that it upholds the principle of regulatory federalism and avoids overlapping or contradicting regulations from other agencies that may have specific expertise in certain aspects of asset safeguarding. Furthermore, privacy is a paramount concern that must be protected during the safeguarding of client assets. While I acknowledge the need for transparency and accountability in the advisory industry, it is imperative that any regulatory measures implemented do not compromise the privacy of investors. Striking a balance between safeguarding assets and preserving the confidentiality of client information is essential to maintain trust and promote a secure investment environment. Additionally, I would like to address the proposal's handling of cryptocurrency assets. Cryptocurrency is a rapidly growing and evolving market that presents unique challenges when it comes to safeguarding client assets. However, it is vital to approach the regulation of cryptocurrency with caution and ensure that any proposed rules do not stifle innovation or create unnecessary barriers. A blanket regulatory framework may not be suitable for this nuanced and dynamic sector. Instead, the SEC should work closely with stakeholders in the cryptocurrency industry to develop targeted and effective safeguards that protect investors without impeding technological advancements. In conclusion, I urge the Securities and Exchange Commission to carefully evaluate the potential overreach of regulatory authority, prioritize the paramount importance of privacy, and approach the regulation of cryptocurrency assets with flexibility and innovation. Balancing investor protections with the need for responsible and efficient regulation is critical for maintaining a thriving and secure investment ecosystem. Thank you for considering my public comment. I trust that you will take all feedback into account as you continue to refine and finalize the proposed rule.