Apr. 14, 2023
Dear Regulators, I am an independant, international, household investor in the US Markets. I support this rule for its greater oversight and regulation of entities which act as exchanges but skirt the boundaries and limitations that should exist for an exchange. I also support heavy regulation for centralised crypto exchanges. It is well known that centralised exchanges rarely even buy the coins an investor purchases. The phrase "Not your keys, not your coins" pertains to this. However, it is important to note, standard US Market brokers ALSO don't seem to purchase your securities when you place an order for them. This is why the cost basis of a household investors stock when they perform a Direct Registration, to become a holder of record, are all messed up. We have seen household investors from MANY brokers with entirely irrational cost basis for their assets. Ranging from $0 up into the tens of thousands per share. I, myself, have a cost basis of $0... Somehow? So while I respect, appreciate and endorse increased oversight and regulatory protection for household investors in every kind of financial market, I believe there is still much work that also needs to be done to protect household investors from the US brokers were already supposed to trust. As for the other elephant in the room, I'm uncertain of how to regulate Decentralised exchanges. I'm not even sure what the implications and ramifications of doing so would be. This is an emerging market, barely out of its infancy, with the potential to revolutionise finance and economic freedom for millions, even billions, of individuals across the globe. The SEC and every western government must be incredibly careful in how they handle this. We don't want to destroy a brilliant, shining example of capitalist progress. Especially not to simply protect outdated financial institutions like the banks and hedge funds... which are currently collapsing under the weight of their own hubris and greed... again. Last I heard, there are now 200 banks across America whom are technically insolvent on paper. There are no DeFi lenders I'm aware of dealing with this issue. That is the power of trustless, bankless smart contracts. Revolutionary. In summary, I support increased regulatory oversight and protections for household investors, but would advise a light hand, carefully placed, when dealing with DeFi for now, until it is better understood from a regulatory standpoint. And fix the US brokerage market first. Thank you for your time, Deepest of regards, An International Investor