Oct. 31, 2023
Dear Securities and Exchange Commission, My name is Jarek Dabrowski, and I would like to provide my public comment on the proposed rule "Safeguarding Advisory Client Assets." While I appreciate the SEC's aim to enhance investor protections and address gaps in the custody rule, I have some concerns regarding the potential negative impact on token liquidity and the treatment of digital assets. Firstly, I am concerned that the proposed rules may hinder token liquidity, making it more difficult for investors to buy and sell tokens. Digital assets, such as cryptocurrencies, have revolutionized finance by leveraging blockchain technology. However, regulatory uncertainties have posed challenges for the industry. The rules, as currently proposed, could further stifle the potential of digital assets and hinder innovation in this rapidly developing space. Additionally, I believe that the SEC's approach towards digital assets risks pushing the crypto industry to other jurisdictions, such as China, where there may be fewer regulatory burdens. By burdensome and overly stringent regulations, the SEC may inadvertently create an environment that favors other countries over the United States for digital asset businesses and investments. This would be detrimental to the growth and competitiveness of the American crypto industry, potentially stifling economic opportunities and job creation. Furthermore, I would like to express my concerns about the potential manipulation of the crypto market. The SEC's actions and unclarity in regulatory approaches create an atmosphere of uncertainty, which can provide opportunities for bad actors to manipulate market prices. It is crucial that the SEC considers the potential unintended consequences of proposed rules on market dynamics and investor sentiment. As the SEC takes its stance on the regulation of digital assets, it is important to foster an environment that encourages innovation while also protecting investors. Regulatory certainty, clear guidelines, and proportionate regulations should be prioritized to support the growth of the digital asset industry. Striking this balance will not only protect investors but also ensure the United States maintains its competitive advantage in this groundbreaking sector. In conclusion, I urge the Securities and Exchange Commission to thoroughly evaluate the potential negative impacts of the proposed rules on token liquidity and the treatment of digital assets. The SEC must strive for a balanced regulatory approach that promotes innovation and attracts investment, while also safeguarding the interests of investors and the integrity of the markets. By doing so, the SEC can foster an environment that supports economic growth, American competitiveness, and protection for all market participants. Thank you for considering my concerns and comments. Sincerely, Jarek Dabrowski