Oct. 28, 2023
To whom it may concern, I, C Cassidy, am submitting this public comment in response to the Securities and Exchange Commission's (SEC) proposed rule on safeguarding advisory client assets. While I appreciate the SEC's intention to enhance investor protections, I have significant concerns regarding potential overreach of regulatory authority, particularly in relation to digital assets or crypto. Digital assets, such as cryptocurrencies, have emerged as a transformative force in the financial industry. They leverage blockchain technology to provide individuals with privacy, freedom to transact, and a decentralized financial platform. It is crucial to recognize and respect the unique characteristics and potential of these digital assets. The proposed rule appears to extend the SEC's oversight and control over digital assets in a way that may exceed its regulatory authority. It is essential to strike a delicate balance between protecting investors and allowing the innovation and growth of digital assets to flourish. Excessive regulatory intervention could stifle the promising potential of blockchain technology and hinder its ability to revolutionize various industries. While it is incumbent upon regulators to mitigate risks associated with the use of digital assets, it is also crucial to foster an environment that encourages innovation, entrepreneurship, and individual privacy. Excessive regulatory oversight can impede the development of these emerging technologies and limit their potential benefits. Moreover, it is worth noting that the investors participating in the crypto space are often well-aware of the inherent risks. They understand and accept the decentralized nature of cryptocurrency and the responsibility that comes with managing their own assets. Imposing additional regulations beyond what is necessary may be duplicative and burdensome for both investors and industry participants. Instead of expanding the SEC's regulatory authority over digital assets, the commission should collaborate with other relevant regulatory bodies that have specific expertise in overseeing these assets. A collaborative approach will ensure a comprehensive and well-informed regulatory framework that addresses digital asset-related risks without stifling innovation. In conclusion, while I appreciate the SEC's efforts to enhance investor protections through the proposed rule on safeguarding advisory client assets, I urge the commission to consider the potential overreach of regulatory authority. Particularly concerning is the proposal's treatment of digital assets, which may inhibit the growth and potential of the emerging crypto industry. The SEC should adopt an approach that fosters innovation, entrepreneurship, and individual privacy, while ensuring appropriate safeguards are in place to protect investors. I encourage the SEC to engage in collaborative discussions with other regulatory agencies to develop an inclusive regulatory framework that recognizes the unique characteristics and potential risks of digital assets. Thank you for considering my comment. Please let me know if you require any further information or clarification. I look forward to the SEC's thoughtful consideration of all public comments and the development of a balanced and effective regulatory approach. Sincerely, C Cassidy