Oct. 30, 2023
May 15, 20XX Securities and Exchange Commission 100 F Street NE Washington, DC 20549-1090 Re: Safeguarding Advisory Client Assets Proposal File Number S7-09-19 Dear Sir/Madam, I am writing to provide public comment on the Safeguarding Advisory Client Assets Proposal under File Number S7-09-19. I appreciate the opportunity to express my concerns and point out the potential issues related to the proposed rule. Lack of Industry Expertise in Drafting the Proposal Firstly, I would like to address the issue of the Securities and Exchange Commission's (SEC) limited expertise in digital assets and cryptocurrency, particularly in the context of the proposed rule. The rapidly evolving landscape of digital assets, including cryptocurrencies built on blockchain technology, has transformed the financial industry. However, the lack of regulatory clarity and understanding of its unique characteristics poses significant challenges. It is concerning that the SEC's proposed rule fails to adequately address the complexities and nuances of digital assets. Given the transformative potential and growing popularity of cryptocurrencies, it is imperative that regulators have a deep understanding of this emerging field. Without this expertise, the proposed rule risks stifling innovation and inhibiting the growth of digital asset markets. Monetary Policy Interaction Furthermore, I would like to draw attention to the potential interactions between the proposed rule and monetary policy. It is essential to assess the impacts of the rule on inflation, economic growth, and financial stability. As the SEC formulates regulations, it is crucial to consider the broader macroeconomic implications and unintended consequences that may arise. The proposed rule should be aligned with the broader monetary policy objectives to ensure that it complements and does not hinder the goals of price stability, sustainable economic growth, and financial system resilience. Regulatory provisions that impede innovation and impose excessive burdens on market participants could have negative consequences for the overall economy. Conclusion In conclusion, I have highlighted concerns regarding the lack of industry expertise in crafting the proposed rule and the potential impacts on the economy in relation to monetary policy. I urge the Securities and Exchange Commission to take these matters into serious consideration during the rulemaking process. As this comment focuses on specific issues, I would appreciate the opportunity to provide further public comment on other aspects of the proposed rule should any additional areas of concern emerge. Moreover, I invite the SEC to clarify any questions or doubts that may arise in response to my comments. Thank you for considering my remarks. I trust that by soliciting and incorporating diverse perspectives, the SEC will develop a robust and balanced regulatory framework that promotes investor protection while fostering innovation and economic growth. Sincerely, Chev