Subject: S7-04-23: Webform Comments from Eli Putt
From: Eli Putt
Affiliation: Farmer

Oct. 29, 2023

Dear Members of the Securities and Exchange Commission,

I am writing to express my concerns regarding the proposed rule on
"Safeguarding Advisory Client Assets." While I understand
the need to enhance investor protections and address gaps in the
custody rule, I believe that certain aspects of the rule may overstep
the SEC's regulatory authority, possibly infringing on areas that
should be under the jurisdiction of other agencies.

One specific concern revolves around privacy rights. The proposed rule
would require investment advisers to share comprehensive client
information, including sensitive financial data and social security
numbers, with numerous third parties. This raises apprehensions about
the privacy and security of this data, considering the ever-present
risk that such information could end up in the wrong hands, even
unintentionally. It is paramount that we preserve the right to
privacy, particularly in our current digital age, where safeguarding
personal data is of utmost importance.

Moreover, it is crucial to strike a balance and prevent excessive
regulation that might stifle innovation in the rapidly evolving
financial industry. While centralized exchanges already implement
identity verification through Know Your Customer (KYC) procedures,
decentralized exchanges operate in a different manner. They rely on
individuals collaborating online through mathematical algorithms,
ensuring privacy and reducing the need for intrusive oversight.
Overregulation in this domain could hinder the development of vital
technological advancements and limit growth opportunities. Doing math
online with others shouldn't be restricted, it is speech.

I strongly urge the SEC to thoroughly weigh the potential consequences
of the proposed rule on individual privacy rights and the hindrance of
innovation. It is vital to find a middle ground that ensures investor
protections without unduly burdening market participants.

Thank you for taking my concerns into consideration.

Sincerely,
Eli J. Putt