Oct. 30, 2023
Dear Securities and Exchange Commission, I am writing to express my concerns regarding the proposed rule "Safeguarding Advisory Client Assets." While I appreciate the SEC's intent to enhance investor protections and address gaps in the custody rule, I believe there are significant issues that need to be addressed before implementing these regulations. Firstly, the lack of industry expertise in drafting this proposal is evident, particularly in the area of digital assets and cryptocurrency. The SEC does not seem to have sufficient understanding of the unique characteristics and complexities of this rapidly evolving industry. This raises concerns about the effectiveness and practicality of the proposed regulations, as well as potential unintended consequences. Furthermore, the proposal suffers from poorly defined terms, leading to confusion and inconsistent interpretations. Terms like "platform," "software," and "ledger" are left undefined, leaving them susceptible to various interpretations. Additionally, the definitions provided for terms like "wallet" and "validator" do not accurately reflect their technical meaning within the industry. This hampers the ability of investment advisers to comply with the regulations and could result in unintended compliance violations. Lastly, I feel compelled to share my personal experience with the SEC. The agency's actions have negatively impacted my life in multiple ways, both mentally, financially and causing great strain on my everyday life. The constant regulatory changes and burdensome requirements have created unnecessary stress and adversely affected my ability to invest and plan for the future. Instead of feeling protected, I am left feeling frustrated and marginalized by the very institution that is supposed to safeguard the interests of investors. In conclusion, I urge the SEC to address these concerns and consider the potential implications of implementing the proposed rule as it currently stands. Greater industry expertise, clearer definitions, and a more balanced approach to regulation are necessary to ensure that the rules actually achieve their intended goals without causing undue harm to individuals like myself. Thank you for considering my comments. Sincerely, Luis