Aug. 13, 2023
Dear Sir/Madam, I trust this message finds you well. It is widely recognized that the modern financial landscape is shaped by skilled professionals and intricate computer networks that connect various exchanges, including those for digital assets and cryptocurrencies. I wish to address the Reporting Threshold Amount memorandum, which currently dictates that swaps valued at $70 USD or more must be reported. I am a strong advocate for transparency and fairness in the financial market. Therefore, I propose the complete removal of any minimum reporting requirement for asset, swap, or debt-based positions. Every transaction, regardless of its value, should be subject to transparent reporting. To achieve this, I propose the implementation of a mandatory daily reporting system for all positions. This requirement should apply universally, without exception, to both parent companies and subsidiary entities. This reporting obligation must encompass all types of positions, encompassing both traditional and digital assets. To prevent any potential manipulation or concealment of risky assets, I recommend separate reporting of all positions with monetary value, whether positive or negative. This would effectively disclose both long and short positions, closing any loopholes that allow high-risk assets to be hidden within seemingly balanced positions or subsidiary entities. The issue of exploiting jurisdictions with lax reporting standards and inadequate securities laws must also be addressed. Changes in position size, whether positive or negative, should be automatically reported by the close of each business day. Given the prevalent automation in the financial industry, including computerized trading and networks, it is evident that end-of-day EDGAR filings should be a standard practice. Efforts to streamline processing times should prioritize the integration of automated solutions, reducing reliance on manual labor. Financial entities, given their substantial profits, should be responsible for adhering to regulations and implementing necessary software adjustments, rather than resorting to fines. It is imperative to take a firm stance against the non-reporting of financial assets, irrespective of their nature or value. To ensure complete transparency and fairness for all participants, reporting should be required for every position, regardless of any threshold, at the conclusion of any business day when a position is established, altered, or closed. Furthermore, penalties for non-compliance should be significantly heightened to discourage violations. Penalties should be proportional to the value of the unreported position, and information regarding violations and their corresponding penalties should be made publicly accessible. This approach will foster trust in the financial system and enable participants to engage with reliable counterparts, thus rebuilding market trust. I urge the Commission to seize this opportunity to champion transparency and fairness in the financial system, not only within the United States but also by providing guidance to regulators in other countries striving for more transparent and equitable markets. Best regards, Laci Bennett