Oct. 30, 2023
Dear Securities and Exchange Commission, I am writing to express my concerns regarding the lack of clarity in the proposed rule "Safeguarding Advisory Client Assets" with regards to the definition of digital assets. The proposal fails to provide clear guidance on what constitutes a digital asset, which can lead to confusion and potential misinterpretation. Digital assets, including cryptocurrencies, have been rapidly transforming the financial landscape and present unique challenges for regulation. However, the absence of a precise definition in the proposed rule creates ambiguity for investment advisers and may hinder their ability to effectively comply with the safeguarding requirements. Given the increasing prevalence of digital assets, it is crucial to establish a clear framework that adequately addresses their unique characteristics and associated risks. Without clear definitions and guidelines, investment advisers may struggle to determine which assets fall under the purview of the rule and how to effectively safeguard them. To ensure investor protection and regulatory effectiveness, it is imperative that the Securities and Exchange Commission provides clarity on the definition of digital assets within the proposed rule. This clarity would enable investment advisers to establish robust measures to safeguard these assets and mitigate the attendant risks. I appreciate the efforts made by the Securities and Exchange Commission in proposing amendments to enhance investor protections and address the gaps in the custody rule. However, I strongly urge the Commission to reconsider the lack of clarity surrounding the definition of digital assets. A precise and comprehensive definition is essential to foster regulatory certainty and promote the responsible use and protection of digital assets within the advisory industry. Thank you for considering my comments. I hope that you will take them into account during the decision-making process Sincerely, Claire Sent with Proton Mail secure email.