Aug. 19, 2026
From: Robert Rutkowski Subject: Protect Investors by Rejecting Crypto Exemptions from Federal Securities Laws To the Securities and Exchange Commission: Re: Protect Investors by Rejecting Crypto Exemptions from Federal Securities Laws Dear Commissioners: I am writing to urge the Securities and Exchange Commission (SEC) to reject its proposed "Regulation Crypto Assets" to the extent that it would exempt crypto-asset offerings from the registration and investor-protection requirements of the federal securities laws. A recent statement from Better Markets raises serious concerns about the direction of the SEC's proposed approach. The SEC has historically required securities offered to the public to be registered so that investors receive the disclosures necessary to make informed investment decisions. The proposed crypto framework would instead create exemptions from those protections. That would represent a troubling departure from the SEC's fundamental mission. Crypto assets should not receive preferential treatment simply because they are technologically novel. Investors in crypto markets deserve the same transparency, disclosure, accountability, and legal protections afforded to investors in other securities markets. The SEC has argued that existing securities rules are unworkable for crypto and that a specialized framework is necessary. But, as Better Markets points out, the SEC has historically applied the same basic securities-law principles to novel financial offerings. Creating a special exemption for crypto would risk establishing a two-tier financial system-one in which traditional securities investors receive established protections while crypto investors are left with substantially weaker safeguards. This is particularly concerning because crypto markets can involve substantial speculation, conflicts of interest, misleading promotion, market manipulation, and significant losses for individual investors. Removing or weakening registration requirements could make it more difficult for ordinary Americans to evaluate the risks of crypto investments before committing their savings. The SEC should therefore: 1. Reject exemptions that remove crypto offerings from established federal securities-law protections. 2. Require meaningful registration and disclosure for crypto offerings that qualify as securities. 3. Apply securities laws consistently to comparable financial products, regardless of the technology underlying them. 4. Prioritize investor protection over the interests of the crypto industry. 5. Ensure that any new crypto regulatory framework is based on evidence, transparency, and enforceable safeguards rather than industry demands for reduced oversight. 6. Provide investors with clear, comprehensive information concerning risks, conflicts of interest, fees, ownership structures, and potential losses. Innovation in financial markets should not come at the expense of investor protection. The SEC's responsibility is not to promote a particular industry; it is to protect investors, maintain fair and orderly markets, and facilitate capital formation. I respectfully urge the Commission to reconsider any proposal that would weaken these longstanding protections for crypto assets. Americans who invest their savings in financial markets deserve a regulatory system that puts their interests ahead of the interests of the industries being regulated. Yours sincerely. Robert E. Rutkowski