Oct. 22, 2023
Hello! I am writing regarding the proposed rule on Safeguarding Advisory Client Assets. While I acknowledge the importance of enhancing investor protections and addressing gaps in the current custody rule, I urge caution in the potential overreach of regulatory authority. One area of concern is the inclusion of digital assets or cryptocurrencies within the scope of the rule. Digital assets, especially those built on blockchain technology, have been transformative in the world of finance. However, regulatory uncertainties surrounding these assets present challenges for investment advisers and custodians alike. The unique nature of digital assets requires careful consideration and expertise, which may be better suited for regulatory bodies specifically dedicated to overseeing these emerging technologies. Moreover, the proposed rule fails to acknowledge the evolving landscape of digital assets and the need for flexible regulations to foster innovation. Overly burdensome requirements on investment advisers can stifle growth and discourage participation in this rapidly developing sector. I also question whether the SEC has the necessary expertise and jurisdiction to regulate digital assets effectively. It is vital to ensure that any regulations in this space are determined in coordination with other agencies that specialize in cryptocurrencies, such as the Commodity Futures Trading Commission or the Office of the Comptroller of the Currency. This collaborative approach would ensure comprehensive and consistent regulation in this complex and evolving field. Thank you for considering my concerns and allowing for public comment on this important matter. Sincerely, Joseph Keefe