Oct. 30, 2023
Dear [Regulatory Agency], I am writing to provide my comments on the proposed rule regarding the safeguarding of client assets by investment advisers (Proposal No. [Docket Number]). While I appreciate the agency's efforts to enhance investor protections and address gaps in the custody rule, I have several concerns pertaining to the scope of the rule, specifically in relation to digital assets. Digital assets, such as cryptocurrency, have become an integral part of the modern financial landscape, offering innovative solutions and transforming traditional practices. However, the regulatory uncertainties surrounding digital assets pose significant challenges for both investors and industry participants. It is important for regulatory agencies like the Securities and Exchange Commission (SEC) to provide clear guidance and regulations that protect investors without stifling technological progress. In light of the proposed rule, I have a specific concern regarding the treatment of digital assets like Hex. Hex is a digital asset built on blockchain technology, designed to provide financial benefits to its users. While I understand the need for regulatory oversight, it is crucial that the authorities ensure fair treatment and refrain from making unsubstantiated claims. If there are concrete facts that justify regulatory actions against Hex, I urge the SEC to present them transparently and engage in a constructive dialogue with the project's developers. However, if there is a lack of substantial evidence, I kindly request that the SEC provide a simple apology to rectify any unintended damage caused to projects working towards the betterment of society. Furthermore, I believe it is essential for regulatory agencies to foster an environment that encourages innovation and growth in the digital asset space. Excessive regulations and lack of clarity can hinder the development of new technologies and impede the potential benefits they can bring to investors and the economy. I urge the SEC to work closely with industry participants, engaging in open and collaborative discussions to develop appropriate regulations that balance investor protection with the promotion of innovation. In conclusion, I appreciate the SEC's dedication to safeguarding client assets and addressing gaps in the custody rule. However, I believe it is crucial for the agency to consider the unique challenges and opportunities presented by digital assets. Regulating cryptocurrencies in a fair and informed manner will not only protect investors but also allow for the continued development of technologies that have the potential to transform finance. I sincerely hope that the SEC will evaluate these concerns and incorporate them into the final rule. Thank you for considering my comments. I remain hopeful that through constructive engagement and open dialogue, we can establish a regulatory framework that supports innovation while safeguarding investor interests. Sincerely, Felipe Zambrano