Oct. 24, 2023
Breanna Martel October 23rd, 2023 Securities and Exchange Commission (SEC) Office of the Secretary 100 F Street NE Washington, DC 20549 RE: Concerns about Lack of Information and Awareness Regarding US Regulation in the Cryptocurrency Space - File S7-04-23 Dear Sir/Madam, I am writing to express my deep concern regarding the current state of information and awareness surrounding cryptocurrency regulation in the United States. Cryptocurrencies and digital assets have become a significant part of the financial landscape, and it is crucial for both investors and industry participants to have a clear understanding of the regulatory framework governing these innovative financial instruments. While I appreciate the efforts made by the Securities and Exchange Commission (SEC) to engage with the industry through proposed regulations, such as File S7-04-23, I believe that more proactive steps are needed to ensure that the cryptocurrency sector remains compliant, transparent, and safe for all stakeholders. It is of paramount importance that the SEC continues to foster an environment where innovation can thrive while safeguarding the interests of investors and maintaining market integrity. In particular, I would like to highlight a few areas of concern: 1. Clarity and Education: There is a palpable lack of clarity in the regulatory landscape for cryptocurrencies. Many industry participants and investors struggle to navigate through a patchwork of state and federal regulations. The SEC must take a lead role in educating the public about the legal framework for cryptocurrencies and disseminating information in a user-friendly manner. 2. Regulatory Coordination: Coordination among various regulatory bodies, both at the federal and state levels, is essential to avoid regulatory arbitrage and ensure consistency in the application of laws. A concerted effort to streamline and harmonize regulations related to cryptocurrencies would be beneficial for the industry's growth and stability. 3. Transparency and Reporting: The lack of standardized reporting and auditing practices within the cryptocurrency space makes it challenging to assess the financial health and risk profile of digital asset issuers and trading platforms. The SEC should consider measures to enhance transparency and require standardized reporting for market participants. 4. Market Manipulation and Fraud: Cryptocurrency markets are vulnerable to market manipulation and fraudulent activities. The SEC should continue its efforts to investigate and prosecute fraudulent schemes while also exploring proactive measures to deter and prevent such activities. 5. Global Competitiveness: The United States must maintain its position as a global leader in technology and finance. A balanced regulatory approach that fosters innovation while ensuring investor protection is crucial to remain competitive in the rapidly evolving cryptocurrency sector. I kindly request that the SEC, in its consideration of File S7-04-23, give due regard to these concerns and take action to address them. I believe that a collaborative approach, involving industry participants, legal experts, and other stakeholders, is essential to develop regulations that are effective and supportive of the growing cryptocurrency sector. Thank you for your attention to this matter, and I hope to see further developments in creating a more comprehensive and coherent regulatory framework for the cryptocurrency space in the United States. Your actions in this regard will not only benefit the industry but also protect the interests of investors and promote financial stability in our ever-evolving digital economy. Sincerely, Breanna Martel