Oct. 19, 2023
To Whom It May Concern, As an individual deeply involved in the cryptocurrency and digital asset space, I am deeply concerned about the proposed "Safeguarding Advisory Client Assets" regulation by the SEC. While I understand the need for investor protection and the prevention of fraudulent activities, I believe that this proposal represents an overreach by the SEC into the realm of cryptocurrencies and digital assets. Firstly, it is important to note that cryptocurrencies and digital assets are already subject to existing laws and regulations. The SEC has previously classified certain cryptocurrencies as securities, and these are already subject to the regulatory framework established by the Securities Act of 1933 and the Securities Exchange Act of 1934. By attempting to extend its jurisdiction further, the SEC risks stifling innovation and hindering the growth of this emerging industry. Furthermore, the proposed regulation fails to take into account the unique characteristics of cryptocurrencies and digital assets. Unlike traditional securities, these assets are decentralized and operate on blockchain technology. They are not held by a central authority or custodian, but rather by individual users in their own digital wallets. This decentralized nature makes it challenging for traditional custodial requirements to be applied effectively. Additionally, the proposed regulation could impose significant burdens on businesses operating in the cryptocurrency space. The requirement to maintain custody of. Thank you for hearing my comments, Ben Johnson