Oct. 22, 2023
Artur Gadzinski 74 Redshank Lane Warrington Wa36rd Dear Securities and Exchange Commission, I am writing to provide my public comment on the proposed rule "Safeguarding Advisory Client Assets." While I appreciate the SEC's intent to enhance investor protections and address gaps in the custody rule, I am concerned about the potential negative impact on the competitiveness of US companies and the risk of identity theft that may arise from the proposed regulations. Firstly, I believe that the broad scope of the rule, which expands the coverage to include a broader range of investments held in a client's account, may put US companies at a competitive disadvantage compared to their international counterparts. This could potentially lead to capital flight and loss of market share. It is crucial to consider the potential consequences of regulations that may hinder the competitiveness of US businesses in the global market. Additionally, I have concerns regarding the handling of personal information under the proposed regulations. By forcing many participants in decentralized finance (DeFi) to collect user information, the proposed rules create potential risks for identity theft and unauthorized data access. Storing sensitive taxpayer information without proper safeguards may inadvertently facilitate the creation of honey pots for identity theft under the guise of tax reporting. It is essential to prioritize the protection of personal data while implementing regulations aimed at improving investor safeguards. To address these concerns, I urge the SEC to consider alternative approaches that strike a balance between enhancing investor protections and minimizing potential negative consequences for US businesses. This could include exploring options for targeted regulations that mitigate risks without imposing undue compliance burdens or stifling innovation. Furthermore, it is imperative that any regulations addressing identity theft and the collection of personal information have robust safeguards to protect against unauthorized access and data breaches. By implementing stringent security measures that align with best practices, the SEC can minimize the risk of identity theft and ensure the confidentiality of sensitive taxpayer information. In conclusion, while the SEC's proposed rule "Safeguarding Advisory Client Assets" aims to enhance investor protections, it is crucial to carefully consider the potential negative impact on the competitiveness of US companies and the risks associated with the collection and storage of personal information. I encourage the SEC to explore alternatives that strike a balance between safeguarding investor assets and minimizing unintended consequences. Additionally, I urge the SEC to ensure comprehensive safeguards are in place to protect against identity theft and unauthorized data access. Thank you for your attention to these concerns. Sincerely, Artur Gadzinski