Oct. 30, 2023
I am against this rule, and below are arguments why I do not support it and wish to never see it imposed. 1. **Increased Compliance Costs:** Cryptocurrency investment firms, including those managing crypto assets for clients, would likely face higher compliance costs to meet the new rules. These costs could result in increased fees for investors, reducing their returns. 2. **Reduced Accessibility:** Stricter regulations may lead to the exclusion of smaller, innovative cryptocurrency firms that are unable to meet the enhanced custodial requirements. This could limit investor choices and access to unique crypto investment opportunities. 3. **Innovation Hindrance:** The cryptocurrency space is known for its rapid innovation. The proposed changes may discourage the development of new crypto-related financial products and services, limiting potential gains for investors. 4. **Impact on Custodial Practices:** The cryptocurrency market relies heavily on various custody solutions, including hardware wallets and blockchain technology. Adapting these practices to meet the new custodial requirements may lead to operational challenges and potential security risks. 5. **Reduced Privacy:** Some cryptocurrency investors value privacy and autonomy over their assets. The proposed amendments might introduce additional reporting and recordkeeping requirements that compromise this privacy, making some investors uncomfortable. Cryptocurrency does not need the SEC to regulate or impose impose any rules on it. Decentralization, transparency, privacy and key to keep in tact. The freedom of speech to write or communicate with written code is our right, and it should not be hindered by unnecessary SEC regulations.