Oct. 14, 2023
To whom it may concern, As a concerned citizen and advocate for the cryptocurrency and digital asset community, I strongly oppose the proposal "Safeguarding Advisory Client Assets; Reopening of Comment Period" by the Securities and Exchange Commission (SEC). While I understand the importance of investor protection and the need for regulations in the financial industry, I believe that the SEC's approach to cryptocurrency and digital assets is an overreach that stifles innovation and hampers the growth of this emerging market. Firstly, it is crucial to recognize that cryptocurrencies and digital assets operate on decentralized networks that are fundamentally different from traditional financial systems. These technologies are built on blockchain, a transparent and immutable ledger that ensures the integrity of transactions. The existing laws and regulations, such as the Investment Advisers Act of 1940, were not designed to address the unique characteristics of cryptocurrencies and digital assets. Therefore, applying these regulations without considering the nuances of this technology would be inappropriate and hinder the development of this industry. Furthermore, the SEC's proposal fails to acknowledge the existing regulatory framework that already governs cryptocurrencies and digital assets. The Financial Crimes Enforcement Network (FinCEN) has established guidelines for virtual currency businesses, requiring them to register as money services businesses (MSBs) and comply with anti-money laundering. Emma Brady