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 understand the SEC's intention to enhance investor protections and address gaps in the custody rule, there are certain aspects of the proposed rule that I believe require further consideration and revision. In particular, I would like to draw attention to the inadequate consideration of the unique properties of cryptocurrency. Cryptocurrency is like the wild west of finance, but if you try to saddle it with outdated regulations, you'll find yourself thrown off quicker than a noob on a bucking bronco. The SEC needs to hop on a digital horse and embrace the decentralized nature and technological complexities of cryptocurrency. Trying to fit it into the same box as traditional assets just doesn't make sense. One key challenge lies in the demonstration of exclusive control, which is a requirement for investment advisers to exercise custody over client assets. It's like trying to lasso a slippery eel! The proposed rule does not provide clear guidance on how investment advisers can adequately demonstrate exclusive control over cryptocurrency held on behalf of clients. We need a rule that can wrangle those digital critters. Furthermore, the proposed rule's focus on qualified custodians is like trying to herd cats. Cryptocurrency has its own ways of keeping assets safe, ya know? The SEC should recognize the alternative custodial practices within the cryptocurrency ecosystem. Just because it's not a fancy qualified custodian doesn't mean it's not doing the job! Additionally, the proposed rule's insistence on regular reviews and segregation of client assets would be like hog-tying a unicorn. The transparency and traceability of blockchain technology pretty much handle that on their own. We don't need all these excess regulatory measures holding us back! To address these concerns, the SEC should throw on a cowboy hat and saddle up with industry participants and cryptocurrency experts who understand the wild and wonderful world of digital finance. By roping together our knowledge and expertise, we can create a regulatory framework that respects the unique properties of cryptocurrency while protecting investors. In conclusion, I reckon it's high time the Securities and Exchange Commission reconsidered the proposed rule "Safeguarding Advisory Client Assets" in light of the unique properties of cryptocurrency. Let's giddy up and ride into the future with a regulatory framework that embraces innovation, flexibility, and the true spirit of the wild market. Thanks for moseying on down the trail with these comments. Yours truly, Staker University