Oct. 14, 2023
The SEC’s proposed expansion of exchange registration requirements to crypto trading systems overreaches agency authority while undermining basic American principles of individual liberty. Requiring surveillance and approval of private crypto transactions violates citizens' fundamental rights of privacy, property, and self-determination. Foremost, mandating disclosure of customer identities and order information infringes on personal privacy rights protected under the Fourth Amendment. Americans have a reasonable expectation that their financial transactions remain private. Forcing otherwise autonomous and pseudonymous crypto exchanges to divulge extensive user data grants the SEC alarming access without just cause. This enables unwarranted fishing expeditions and profiling that betray constitutional safeguards. Additionally, imposing registration costs and restricting business models contravenes Fifth Amendment protections against deprivation of property without due process. The threat of enforcement denies companies presumed innocence and the chance to be heard. Subjecting innovators to developing novel but complex technologies to pursue their livelihoods deprives economic liberties vital to free enterprise. More broadly, the SEC overriding individual crypto users’ right to freely exchange lawful property is unconstitutional and undermines personal autonomy. Americans can engage in voluntary commerce using whatever medium of exchange they prefer, whether traditional dollars or cryptocurrency. As long as not engaging in demonstrable fraud, their choice of transactional vehicles is a personal prerogative government cannot abridge without overriding justification. In Federalist 51, James Madison warned that the government’s greatest threat comes from “encroaching on the rights of the community.” While consumer protection merits consideration, the means must not trample fundamental rights. The SEC should temper regulation zeal with respect for vital privacy, property, and self-determination principles that limit governmental power over individual freedom. Extending bureaucratic reach into lawful and innovative crypto markets violates sacred personal liberties enshrined in America’s founding documents. In conclusion, forced surveillance of private crypto transactions breaches privacy while restricting free enterprise undermines property rights and self-determination. These encroachments betray core constitutional protections designed to check unfettered regulatory overreach. The SEC should reconsider the overbearing proposal threatening individual liberty in the name of expansive new authority. Respectfully, Proud American