Oct. 31, 2023
Public Comment on Regulations.gov Dear Securities and Exchange Commission, I am writing to provide my concerns and comments regarding the proposed rule on "Safeguarding Advisory Client Assets." While I commend the SEC's efforts to enhance investor protections and address gaps in the custody rule, I would like to draw attention to certain issues that require further consideration and clarification. Specifically, I am concerned about the lack of clarity on the definition of digital assets and the inadequate consideration of smart contracts within the proposed rule. Digital assets, including cryptocurrencies, have emerged as a significant innovation in the financial industry, leveraging blockchain technology to facilitate secure transactions and decentralized systems. However, the proposal does not provide clear guidance on what constitutes a digital asset, leading to confusion and potential misinterpretation. The evolving nature of technology demands a well-defined and inclusive framework that encompasses the unique characteristics of digital assets. Without this clarity, market participants may be deterred from engaging with these transformative assets, hindering innovation and impeding the growth of the digital economy. Furthermore, within the realm of digital assets, smart contracts have gained considerable prominence. These self-executing contracts, encoded on blockchain networks, eliminate the need for intermediaries and allow for rapid, transparent, and efficient transactions. Unfortunately, the proposal does not adequately address the unique characteristics of smart contracts. By failing to recognize their potential and address regulatory challenges, the SEC creates uncertainty and potential legal risks for market participants. It is crucial to establish a comprehensive framework that accommodates the evolving nature of technology, ensuring regulatory clarity and promoting responsible innovation. Additionally, I want to express my concerns regarding Mr. Gary Gensler's position on decentralized smart contract assets such as HEX, PHEX, PulseChain, and PulseX. His statements and actions have adversely impacted investors like myself. The laws that were established in 1932 may not appropriately apply to these decentralized assets, and the failure to recognize their potential for transforming finance limits the growth and opportunities for investors. Mr. Gensler's absence of knowledge and understanding related to decentralized crypto and the future of finance deprives investors of choices, freedom, and responsible judgment. I urge the SEC to reconsider its strict stance and appoint someone with the knowledge, enthusiasm, and compassion for decentralized crypto assets and their potential for the future. In light of Mr. Gensler's actions and statements, I would also like to request a public apology from him to all investors affected by his false judgments and the resulting damage to our investments. It is crucial for a regulatory authority to acknowledge its errors and take responsibility for the negative consequences caused by its actions. This would demonstrate a commitment to fairness, transparency, and protecting the interests of investors. In conclusion, I believe it is essential for the SEC to address the concerns raised regarding the definition of digital assets and the consideration of smart contracts within the proposed rule. By providing clarity and accommodating innovation, the SEC can support the responsible development of digital assets and contribute to the growth of the digital economy. Furthermore, I would like to reiterate my call for a public apology from Mr. Gary Gensler to all investors affected by his ill-informed judgments. Thank you for considering my comments and for your dedication to investor protection. I look forward to a favorable resolution of these concerns. Sincerely, Peppi La Montagna Get Outlook for Android