SEC Chair Gary Gensler’s Clarification on Bitcoin Following Spot Bitcoin ETF Approvals
Amid the recent approval of spot bitcoin exchange-traded funds (ETFs), U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has issued a statement to clarify the regulator's position on bitcoin and cryptocurrency.
Gensler began by stating that the Commission has approved the listing and trading of several spot bitcoin exchange-traded product (ETP) shares. He highlighted that the SEC had previously disapproved more than 20 exchange rule filings for spot bitcoin ETPs since 2018.
However, Gensler emphasized that circumstances have changed, noting that the U.S. Court of Appeals for the District of Columbia found that the Commission failed to adequately explain its reasoning for disapproving the listing and trading of Grayscale's proposed ETP. As a result, Gensler believes that the most sustainable path forward is to approve the listing and trading of these spot bitcoin ETP shares.
Grayscale Investments, which aims to convert its bitcoin trust into a spot bitcoin ETF, is one of the 11 issuers authorized by the SEC to list and trade their spot bitcoin ETFs on NYSE Arca, Nasdaq, and Cboe BZX Exchange.
Gensler made it clear that the SEC's approval of spot bitcoin ETFs does not indicate a willingness to approve listing standards for crypto asset securities. He also emphasized that the approval does not reflect the Commission's views on the status of other crypto assets or the compliance of certain crypto asset market participants with federal securities laws.
Reiterating his belief that most crypto tokens are securities, Gensler stated that the vast majority of crypto assets are investment contracts and subject to federal laws. He concluded by urging investors to remain cautious about the risks associated with bitcoin and products linked to crypto.
This week, Gensler has also used social media to issue warnings about investing in crypto. On Monday, he highlighted various risks in the crypto industry, and on Tuesday, he provided investment advice for crypto investors.
What are your thoughts on SEC Chairman Gary Gensler's statement regarding bitcoin and spot bitcoin ETF approvals? Share your opinions in the comments section below.
Frequently Asked Questions
Who owns the gold in a Gold IRA?
The IRS considers anyone who owns gold to be “a form money” and therefore subject to taxation.
You must have at least $10,000 in gold and keep it for at most five years to qualify for this tax-free status.
Although gold can help to prevent inflation and price volatility, it's not sensible to have it if it's not going to be used.
If you plan to sell the gold one day, you will need to report its worth. This will affect how much capital gains tax you owe on cash you have invested.
You should consult a financial planner or accountant to see what options are available to you.
Can I hold physical gold in my IRA?
Not just paper money or coins, gold is money. Gold is an asset people have used for thousands years as a place to store value and protect their wealth from economic uncertainty and inflation. Gold is a part of a diversified portfolio that investors can use to protect their wealth from financial uncertainty.
Many Americans are now more inclined to invest in precious metals like gold and silver than stocks or bonds. It is possible to make money by investing in gold. However, it doesn't guarantee that you'll make a lot of money.
Another reason is the fact that gold historically has performed better than other assets in times of financial panic. Gold prices rose nearly 100 percent between August 2011 and early 2013, while the S&P 500 fell 21 percent over the same period. During turbulent market conditions gold was one of few assets that outperformed stock prices.
The best thing about gold investing is the fact that there's virtually no counterparty risk. Your shares will still be yours even if your stock portfolio drops. However, if you have gold, your value will rise even if the company that you invested in defaults on its loans.
Finally, gold offers liquidity. This allows you to sell your gold whenever you want, unlike many other investments. You can buy gold in small amounts because it is so liquid. This allows you take advantage of the short-term fluctuations that occur in the gold markets.
Which precious metals are best to invest in retirement?
Gold and silver are the best precious metal investments. They're both easy to buy and sell and have been around forever. You should add them to your portfolio if you are looking to diversify.
Gold: Gold is one the oldest forms currency known to man. It is also extremely safe and stable. It's a great way to protect wealth in times of uncertainty.
Silver: Silver is a popular investment choice. It is an excellent choice for investors who wish to avoid volatility. Silver, unlike gold, tends not to go down but up.
Platinium: Another form of precious metal is platinum, which is becoming more popular. It's like silver or gold in that it is durable and resistant to corrosion. It is however more expensive than its counterparts.
Rhodium. Rhodium is used as a catalyst. It is also used to make jewelry. It's also relatively inexpensive compared to other precious metals.
Palladium: Palladium, which is a form of platinum, is less common than platinum. It's also more accessible. For these reasons, it's become a favorite among investors looking to add precious metals to their portfolios.
What are the benefits of having a gold IRA?
It is best to put your retirement money in an Individual Retirement Account (IRA). It's tax-deferred until you withdraw it. You are in complete control of how much you take out each fiscal year. And there are many different types of IRAs. Some are better for those who want to save money for college. Some are for investors who seek higher returns. Roth IRAs let individuals contribute after age 591/2 and pay tax on any earnings at retirement. Once they start withdrawing money, however, the earnings aren’t subject to tax again. This account may be worth considering if you are looking to retire earlier.
A gold IRA is similar to other IRAs because it allows you to invest money in various asset classes. Unlike a regular IRA that requires you to pay taxes on the gains you make while you wait to access them, a gold IRA does not have to do this. People who want to invest their money rather than spend it make gold IRA accounts a great option.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. This eliminates the need to constantly make deposits. To avoid missing a payment, direct debits can be set up.
Finally, the gold investment is among the most reliable. Because it isn't tied to any particular country its value tends be steady. Even during economic turmoil, gold prices tend to stay relatively stable. It is therefore a great choice for protecting your savings against inflation.
How much should your IRA include precious metals
The most important thing you should know when investing in precious metals is that they are not just for wealthy people. They don't require you to be wealthy to invest in them. In fact, there are many ways to make money from gold and silver investments without spending much money.
You might think about buying physical coins such a bullion bar or round. Stocks in companies that produce precious materials could be purchased. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.
You can still get benefits from precious metals regardless of what choice you make. These metals are not stocks, but they can still provide long-term growth.
And unlike traditional investments, they tend to increase in value over time. If you decide to sell your investment, you will likely make more than with traditional investments.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
External Links
investopedia.com
bbb.org
cftc.gov
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement account
How To
The History of Gold as an Asset
From the beginning of history, gold was a popular currency. It was popular because of its purity, divisibility. uniformity. scarcity and beauty. Because of its intrinsic value, it was also widely traded. Different weights and measurements existed around the world, however, because there were not international standards to measure gold. One pound sterling, for example, was equivalent in England to 24 carats, and one livre tournois, in France, to 25 carats. A mark, on the other hand, was equivalent in Germany to 28 carats.
The United States began issuing American coin made up 90% copper, 10% zinc and 0.942 fine-gold in the 1860s. The result was a decrease in foreign currency demand, which led to an increase in their price. In this period, large amounts of gold coin were minted by the United States, which caused the gold price to drop. Because the U.S. government had too much money coming into circulation, they needed to find a way to pay off some debt. To do so, they decided to sell some of the excess gold back to Europe.
Many European countries didn't trust the U.S. dollars and started to accept gold for payment. However, after World War I, many European countries stopped taking gold and began using paper money instead. The value of gold has significantly increased since then. Even though gold's price fluctuates, it is still one of the most secure investments you could make.
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By: Kevin Helms
Title: SEC Chair Gary Gensler Emphasizes Spot Bitcoin ETF Approval Does Not Mean BTC Endorsement
Sourced From: news.bitcoin.com/sec-chair-gary-gensler-warns-spot-bitcoin-etf-approval-isnt-btc-endorsement/
Published Date: Wed, 10 Jan 2024 23:30:33 +0000
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