Oct. 28, 2023
From: P. Deveny To: Securities and Exchange Commission Office of the Secretary 100 F Street NE Washington, DC 20549 RE: File Number S7-04-23 - Proposed Amendments to Rule 206(4)-2 Dear Sir/Madam, I am writing to provide my perspective on the proposed amendments to Rule 206(4)-2 under the Investment Advisers Act of 1940, as outlined in File Number S7-04-23. These proposed changes seek to expand the scope of the current custody rule, enhance custodial protections, and update related recordkeeping and reporting requirements for advisers. As an investor, I appreciate the Securities and Exchange Commission's role in protecting investors. However, I believe it's essential to recognize that not all investors seek the same level of protection. While regulation serves a vital purpose, I would like to emphasize the importance of offering a choice for investors like me who prefer to interact with the blockchain with minimal government overreach. The proposed amendments aim to encompass a broader array of client assets and advisory activities within the custody rule. While I understand the need to protect investors, it is equally crucial to preserve the principles of individual financial autonomy, especially in a landscape like the Cryptocurrency market. The underlying purpose of cryptocurrency is to maintain privacy for consumers, provide the freedom to transact, and ensure minimal government involvement, all in line with the decentralized financial platform that cryptocurrencies were designed to represent. This desire for minimal interference does not indicate that retail investors intend to evade taxes. Rather, it reflects the aspiration for a blockchain environment that adheres to the fundamental principles of privacy, autonomy, and decentralization. The proposal's explicit inclusion of an adviser's discretionary authority to trade client assets within the definition of custody raises concerns. It's imperative to ensure that regulatory measures do not inadvertently hinder investors' freedom to manage their assets while discouraging innovation within the advisory space. Though the Crypto market is volatile, it is a well known and assumed for investors entering this arena to tread carefully. There are pitfalls as with any financial arena but Crypto users do not want a government's organization's help. Most crypto users prefer anonymity, our ability to freely transact (which is the equivalent of speech), and do so in a decentralized manner for which Crypto was intended. I encourage the SEC to explore avenues for flexibility, collaboration, and adaptability when implementing these changes. By working closely with industry stakeholders and embracing innovation, we can strike a balance between protecting investors and preserving the core principles that attracted many to the world of financial advisory services. Thank you for considering my comments on these proposed amendments. I look forward to a regulatory framework that respects the diverse preferences of investors and upholds the principles of privacy, autonomy, and decentralization. Sincerely, P. Deveny