Subject: S7-04-23
From: Jarek Dabrowski
Affiliation:

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