Oct. 30, 2023
To Whom It May Concern: I am commenting on the proposed amendments to tighten the definition of "actual delivery" for retail commodity transactions. While protecting consumers is important, I worry this rule as drafted represents government overreach and overregulation. The proposed tracing requirements and narrowed definition of actual delivery seem onerous and could restrict retail access to commodity markets. Providers may pull back from serving smaller investors due to compliance burdens. This could limit consumer choice and access to alternative assets. In addition, the 28 day rule for physical delivery is arbitrary. Some commodities like precious metals may take longer to deliver and verify based on logistics and authentication. A firm timeline contradicts the flexibility needed for fair markets. The CFTC already has broad power to pursue and shut down fraudulent operations. Expanding authority through a complex web of tracing requirements, delivery definitions, and firm time limits has potential for unintended consequences. It could ensnare good actors along with bad. There are better ways to protect consumers than blurring the line between regulation and overreach. I urge the CFTC to reconsider the scope of this proposal and pursue more targeted consumer protections. Broad, rigid rules seldom improve markets. Thank you for considering this perspective.