Oct. 30, 2023
Securities and Exchange Commission 100 F Street, NE Washington, DC 20549 Subject: Public Comment – Safeguarding Advisory Client Assets (File No. S7-15-20) Reference: Proposed Rule – Safeguarding Advisory Client Assets Dear Sir/Madam, I am writing to provide my public comment on the proposed rule titled "Safeguarding Advisory Client Assets" issued by the Securities and Exchange Commission (SEC). As a concerned investor, I appreciate the agency's efforts to enhance investor protections and address gaps in the custody rule. However, I have specific concerns regarding the potential overreach of regulatory authority and the treatment of digital assets. 1. Potential Overreach of Regulatory Authority: There is a concern that the SEC's proposed rule may exceed its regulatory authority, encroaching on areas that should be regulated by other agencies. While the SEC's mission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation, some aspects of the proposed rule on safeguarding advisory client assets appear to go beyond these objectives. The SEC should be cautious about taking actions that could infringe upon the roles and authorities of related regulatory bodies, whose expertise may be better suited for regulating certain aspects of the advisory industry. 2. Digital Assets: The rise of digital assets, particularly cryptocurrencies, has transformed the financial landscape, making it crucial for regulators to address regulatory uncertainties in this space. It is commendable that the SEC is taking steps to discuss the application of the proposed rule to crypto assets. However, there is a need for further clarity and guidance to ensure that regulations are appropriately tailored to this emerging and innovative industry. Failing to strike the right balance between investor protection and innovation could stifle growth and prevent the United States from harnessing the potential benefits offered by digital assets and blockchain technology. In conclusion, while I appreciate the SEC's efforts to enhance investor protections and address gaps in the custody rule through the proposed "Safeguarding Advisory Client Assets" rule, I urge the agency to carefully consider any potential overreach of its regulatory authority. Additionally, greater clarity and guidance on the treatment of digital assets within the rule will be vital to encourage innovation and ensure a level playing field for market participants. Thank you for considering my concerns and for providing the opportunity to comment on the proposed rule. I trust that the SEC will take into account the diverse opinions and perspectives shared during this public comment period to craft a final rule that strikes the appropriate balance between investor protection, regulatory authority, and innovation in the digital asset space. Sincerely, Sent with Proton Mail secure email.