Subject: SR-NYSE-2023-09: Webform Comments from Lisa Price
From: Lisa Price
Affiliation:

Jan. 17, 2024

While I realize that this effort has been underway since
2021, it is fraught with self-dealing, conflict of interest, and lack
of clarity how land rights can be separated from ownership.

The SEC has taken years, YEARS, to review and approve a spot Bitcoin
ETF, but wants to take a few months to cram through an entirely new
investment vehicle? That is entirely irresponsible.

Allow me to articulate some of the more egregious reasons that NACS
should not be approved:

1) We already have real estate investment trusts and publicly traded
farmland trusts that are available to investors. If an entity wants to
control the rights of use on land, it should acquire the land at fair
market value and manage it, within the investment trust, according to
its charter.

2) Public Lands in the United States, whether managed by the Bureau of
Land Management or the Department of the Interior or Department of
Agriculture are mandated by their enabling legislation to be managed
for multiple use. It appears that these investment vehicles are being
designed to sell land rights of public lands to private entities to
remove multiple use or even public access. This is contrary to the
rights of Americans to access and use of public lands and to the
enabling legislation of the underlying duties of the agencies. You
cannot create a legal entity to violate these duties.

3) The NYSE makes money off of listings. The NYSE is also a minority
shareholder of IEG, which it has specifically identified as the
enabling partner to “seek to identify and develop NACs for listing
on the Exchange, in addition to marketing the listing and trading of
NACs on the Exchange and providing training with respect to the NAC
structure.” The NYSE is the fox in the hen house, creating an entity
that it will profit directly from the creation of. This looks very Sam
Bankman Fried fraudulent. That the SEC has let this application get to
the public comment point of its review, without demanding separation
of these entities is really inappropriate and bad policy.

To summarize, the NYSE does not need a new investment entity. The
market is served by entities with direct land ownership. The land and
rights should not be split apart. The NYSE and its minority-owned
partner IEG will be directly involved in the creation of NACs to their
own financial benefit, which is a conflict of interest. Irrespective
of the current trends in the Biden Administration regarding ESG
investing, many professional money managers have found their
performance in these investments lacking and are starting to abandon
these platforms.

If you have to take years and years of litigation, S-1 re-writes and
all sorts of hoop jumping for the Bitcoin Spot ETFs, you do your
agency a disservice without greater scrutiny of this entity
application and its right up front conflicts of interest, potential
likelihood of violation of federal law if these entities acquire
rights to federal land meant to be actively managed, and the lack of
need for such a product, given the already approved existence of land
and real estate investment trusts.