Oct. 6, 2023
In response to the following rulemaking question: 3. Are there particular types of assets held in a client's advisory account that should or should not be subject to the proposed rule? If so, what are they and why should they be included or excluded? Are there other safeguards outside of the proposed rule that apply to these positions that would satisfy the policy goals of the rule? Does the answer depend on the type of asset? In regards to cryptocurrency, this rule should only apply to centralized crypto exchanges. It should not apply to decentralized crypto exchanges. In a decentralized crypto exchange the owner of the crypto currency holds the cryptological keys to that cryptocurrency and as such has sole custody of that cryptocurrency and takes full responsibility for the custody of that cryptocurrency. Developers who utilize free, open source code and software to update and maintain the network do not custody nor are they custodians of any cryptocurrencies. If sufficiently decentralized both the network and cryptocurrencies residing on it are not custodied by any individuals except the owner of the cryptocurrency who controls the ability to transfer or transact with that cryptocurrency through the ownership of their private keys.