Dear SEC I am writing to submit a public comment on the proposed regulations regarding "Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realized and Basis for Digital Asset Transactions" (Docket Number: REG-122793-19). I have carefully reviewed the proposal and have several concerns that I would like to bring to your attention. Firstly, I would like to address the potential impact of these regulations on the digital asset market. The proposed regulations would impose a heavy regulatory burden on brokers, including digital asset trading platforms, payment processors, and hosted wallets. While it is important to ensure compliance and protect investors, we must also consider the potential unintended consequences. The stringent reporting requirements may discourage new entrants and stifle innovation in the digital asset market. This could lead to industry consolidation, reducing competition and limiting consumer choice. It is crucial to recognize the transformative nature of digital assets, such as cryptocurrency, and the underlying technology of blockchain. These innovations have the potential to revolutionize finance and provide solutions to longstanding problems. However, the regulatory uncertainties surrounding digital assets increase the challenges faced by industry participants. Instead of imposing excessive regulations, it would be more beneficial to foster an environment that encourages responsible innovation while protecting investors and consumers. Furthermore, the definition and classification of digital assets need to be carefully considered in the proposed regulations. Digital assets are often referred to by various terms, such as coins or tokens, and can include virtual currencies or cryptocurrencies. The classification of these assets has significant implications for tax treatment and reporting requirements. It is essential to have clear and specific definitions to ensure consistent application of the regulations. In addition, the proposed regulations should acknowledge the diversity of digital asset wallets and trading platforms. Wallets can be digital or physical, connected or disconnected from the internet, and custodial or non-custodial. Similarly, trading platforms vary in their services and operations. Attempting to regulate these diverse entities with a one-size-fits-all approach may not be suitable and could hinder the growth and development of the digital asset ecosystem. I would also like to highlight the potential challenges associated with reporting real estate transactions involving digital assets. While it is important to ensure transparency and address any potential misuse of digital assets in real estate transactions, additional reporting requirements may impose undue burdens on responsible industry actors. Any regulations in this area should strike a balance between transparency and practicality. In conclusion, while it is necessary to address the unique aspects of digital asset transactions, the proposed regulations should be mindful of the potential consequences and unintended limitations it may impose. A balanced approach that encourages responsible innovation, protects investors, and fosters competition is crucial in this rapidly evolving industry. Thank you for considering my concerns. I appreciate the opportunity to provide input on this important matter. If you require any further information or have any questions, please do not hesitate to contact me. Yours sincerely, Joshua