Dear Securities and Exchange Commission, I am writing to express my concerns regarding the proposed rule on Safeguarding Advisory Client Assets. While I appreciate the aim of enhancing investor protections and addressing gaps in the custody rule, I believe there are potential negative impacts that need to be seriously considered. Firstly, I am concerned about the potential negative impact on decentralized finance (DeFi). Decentralized finance has emerged as an innovative and promising field, providing greater financial inclusion and opportunities for individuals who have been traditionally underserved by the traditional financial system. The proposed rules, particularly in regards to digital assets or crypto, may hinder the growth and development of decentralized finance projects, limiting innovation and potential financial inclusivity. This could stifle progress and limit the opportunities for individuals to participate in a rapidly evolving financial landscape. Furthermore, the proposed rules pertaining to digital assets fail to recognize the complexities and unique characteristics of these assets, especially those built on blockchain technology. Digital assets, like cryptocurrencies, have been transforming the financial industry and have the potential to revolutionize various aspects of finance. However, current regulatory uncertainties pose significant challenges to the growth and development of this emerging sector. It is important that the Securities and Exchange Commission considers a more nuanced approach to regulating digital assets, taking into account their unique qualities and the potential benefits they offer. Additionally, I must express some concerns regarding the Securities and Exchange Commission's potential overreach with these proposed rules. While investor protections are of utmost importance, it is crucial that regulators strike a balance between safeguarding client assets and allowing for innovation and progress. Overregulation can hinder the growth of the advisory industry and limit the ability of investment advisers to adequately serve their clients. It is essential that the Securities and Exchange Commission takes a pragmatic approach that allows for flexibility and does not stifle investment opportunities or limit investor choices. In conclusion, while I commend the Securities and Exchange Commission for its efforts to enhance investor protections through the Safeguarding Advisory Client Assets proposal, I have shared my concerns regarding the potential negative impact on decentralized finance (DeFi), the need for a more nuanced approach to regulating digital assets, and the risk of overreaching regulations. It is vital that the Securities and Exchange Commission carefully considers these considerations and takes into account the potential consequences before finalizing the proposed rule. Thank you for the opportunity to provide this public comment. Sincerely, Kevin McGarry