The Securities and Exchange Commission 100 F Street, NE Washington, DC 20549 October 10, 2022 Dear Sir/Madam, Re: Safeguarding Advisory Client Assets - Public Comment I am writing to provide my public comment on the proposed rule "Safeguarding Advisory Client Assets" (the Rule) put forth by the Securities and Exchange Commission (SEC). I appreciate the SEC's efforts in addressing the need for enhanced investor protections and the regulation of custody practices by investment advisers. However, I have concerns regarding the lack of clarity on the definition of digital assets and the potential risks associated with identity theft. Firstly, I would like to draw attention to the lack of clarity in the proposed rule regarding the definition of digital assets. As the proposal does not provide clear guidance on what constitutes a digital asset, there is a significant risk of confusion and potential misinterpretation. It is crucial for the SEC to provide a comprehensive and unambiguous definition of digital assets to ensure consistent understanding and compliance by investment advisers. Furthermore, I have significant concerns regarding the potential risks of identity theft arising from the proposed regulations. The requirement for participants in decentralized finance (DeFi) to collect user information raises serious privacy and security concerns. It is essential to consider the storage and safeguarding of sensitive taxpayer information collected under the guise of tax reporting. This could inadvertently create attractive targets for identity thieves, undermining the purpose of investor protection. While I appreciate the SEC's objectives of investor protection and regulatory oversight, it is crucial to mitigate the unintended consequences that could result in the creation of honey pots for identity theft. We must seek a balance between safeguarding client assets and ensuring robust data protection protocols, minimizing the risk of unauthorized access and misuse of personal information. In conclusion, I urge the SEC to address the lack of clarity surrounding the definition of digital assets and thoroughly evaluate the potential risks of identity theft resulting from the proposed regulations. It is crucial to prioritize the implementation of strong privacy measures and robust security protocols to protect the sensitive information collected by investment advisers. I appreciate the opportunity to provide my comments and hope that the SEC will take them into careful consideration. Sincerely, Anonymous