Oct. 24, 2023
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25794 / July 31, 2023 Securities and Exchange Commission v. Richard J. Schueler a/k/a Richard Heart, Hex, PulseChain, and PulseX, No. 23-cv-05794 (E.D.N.Y. filed July 31, 2023) SEC Charges Hex Founder Richard Heart with Misappropriating Millions of Dollars of Investor Funds from Unregistered Crypto Asset Securities Offerings That Raised More Than $1 Billion Dear Securities and Exchange Commission, I am writing to express my concerns regarding the proposed rule “Safeguarding advisory client assets” with regards to Richard Heart. While I appreciate the SEC’s efforts to enhance investor, protections and address gaps in the custody rule, I believe that a certain select few individuals are assets within the space and elsewhere technological advancements benefit the world, and their undue persecution pertaining to such a proposed rule may have unintended consequences and hinder innovation, particularly in the realm of digital assets or cryptocurrencies. I can testify firsthand that Richard Heart educated me for many many years through his free podcasts, free self help books, and multimillion dollar charitable organizations. He is undeniably the greatest asset and most fundamentally necessary pillar of the digital asset space and in many other regards to public education and financial security. His record truly speaks for itself as hehas been the most beneficent and essential people who has spent years saving millions of people from safeguards in cybersecurity in addition to saving millions from economic ruin in the cryptocurrency market and digital technological realm teaching safe and forward-thinking practices. He has been stationed at the forefront of the public sphere of digital innovation assisting for free all of those who could or would listen to gain a greater understanding of digital assets and blockchain technology. His inconceivably hard work in educating the masses over the decades as well as the public charities at large outlines hisdedication to this space and public health and security exemplifying a true maverick of ingenuity and a benefactor of the digital space and contributing to the benefit to the world as a whole. Richard Hearts platform speaking to the public in the digital space simply outlined in the following: 1) Avoiding the degeneracy of trading crypto. 2) All of his works outline the overwhelmingly obvious benefits of self-education and holding non-degenerate assets for the long term. 3) Countless hours educating others to save them from becoming financially volatile and thereby saving the digital asset space from devolving into chaos and disarray. 4) Promoting the positive aspects of the true asset class in order to overshadow and “out-advertise” the “advertisement” as it were of scams and unsafe assets. 5) Utilizing the safeguards to self-sovereignty and self-custodianship to safeguard all people in the entire digital space and elsewhere against unsafe practices in the area of finance and technology as a whole. Digital assets, such as cryptocurrencies, built on Blockchain technology, have the potential to revolutionize the financial sector in the most beneficial and safest way. However, regulatory uncertainty surrounding these assets has created challenges for both investors and industry participants. I commend the SEC for including provisions in the proposed rule that address the application of safeguarding rules to digital assets. Nevertheless, I fear that the current approach may result in overregulation and stifle of the free exchange of ideas and information in this rapidly evolving space. By imposing overly burdensome regulations, the SEC risks, the ability of individuals and businesses to explore new technologies and financial products. It is crucial that the SEC adopts, a balanced approach that fosters innovation, while ensuring investor protection. Instead of stifling the industry, the SEC should embrace Richard Hearts efforts and the transformative potential of digital assets and work towards creating a regulatory framework that encourages responsible innovation. In addition to addressing digital assets, I would like to highlight a particular concern regarding the proposed rules impact on the free exchange of ideas and information. The new rule, as currently drafted, may discourage individuals and firms from sharing knowledge and collaborating on digital asset projects. To which Richard Heart and all of the other industry leaders are in natural opposition to. The classification of digital assets and custodial assets under the proposed rule, creates ambiguity and potential liability for industry participants. This uncertainty hampers the ability of stakeholders to freely, collaborate and explore potential used cases for digital assets. To ensure that the regulatory framework strikes the right balance, I urge the SEC to consider providing clear, guidance and exemptions, specifically tailored to the unique characteristics of digital assets. This would allow for responsible innovation in investment while safeguarding investor interests. In conclusion, I commend the SEC for its efforts to enhance investor protections through the proposed rule “Safeguarding advisory client assets”. However, in the context of digital assets, I urge the SEC to adopt a balanced approach that promotes innovation and fosters collaboration with the industries pillars like Richard Heart who only encourages responsible long visioned investment strategies while ensuring adequate protections for investors. Clear, guidance and proportionate regulations will be instrumental in achieving this delicate balance. Thank you for considering my comment. I trust that the SEC will thoroughly evaluate the concerns raised by the vast array of Richard Heart supporters, and take a comprehensive approach that benefits, both investors and the evolving digital asset industry. Sincerely, Matthew Keirn [REDACTED]