Warren Davidson, the Vice Chairman of the Subcommittee on Digital Assets, Financial Technology, and Inclusion of the House Financial Services Committee, has strongly opposed the policy recommendations put forward by the U.S. Treasury regarding crypto assets. He argues that these suggestions aim to effectively outlaw digital assets in the United States by imposing impractical compliance requirements.
Warren Davidson Labels U.S. Treasury's Crypto Policy Proposals as 'Misleading'
Warren Davidson, the Vice Chairman of the Subcommittee on Digital Assets, Financial Technology, and Inclusion of the House Financial Services Committee, has rejected the regulatory proposals presented by the U.S. Treasury for the cryptocurrency industry. In a recent opinion article titled 'Setting the record straight and debunking unworkable illicit finance proposals,' Davidson argues that these recommendations, similar to those proposed by Senator Elizabeth Warren, seek to undermine the cryptocurrency industry in the United States.
The suggested policies would classify wallet providers, miners, validators, and other network participants as a new category of crypto financial institutions, subjecting them to the same reporting standards as traditional financial institutions.
Davidson criticizes Senator Warren's claims that even validator node operators 'pose national security concerns,' stating that such assertions reflect a level of ignorance that is unbecoming of any policymaker.
Regarding the objective of these measures, he remarked:
It is an attempt to exploit the lack of understanding among others by using an impractical compliance burden as a means to effectively ban digital assets in the United States.
Furthermore, Davidson emphasizes that blockchain and cryptocurrency are not the primary methods used for financing terrorism, contrary to recent misleading media reports suggesting that the terrorist group Hamas raised over $93 million in digital assets. He argues that such false narratives are being used to push policies that aim to dismantle the future of the cryptocurrency industry in the United States.
Davidson asserts that the first step in combating illicit activities involving crypto should be to attract more crypto companies to the United States, a goal that would be difficult to achieve if these policies are implemented. He concludes, 'Their intentionally flawed framework will force companies and capital to move offshore.'
What are your thoughts on Warren Davidson's perspective on cryptocurrency regulation? Share your opinions in the comments below.
Frequently Asked Questions
Who holds the gold in a gold IRA?
The IRS considers an individual who owns gold as holding “a form of money” subject to taxation.
To take advantage of this tax-free status, you must own at least $10,000 worth of gold and have been storing it for at least five years.
Owning gold can also help protect against inflation and price volatility, but it doesn't make sense to hold gold if you're not going to use it.
If you plan on selling the gold someday, you'll need to report its value, which could affect how much capital gains taxes you owe when you cash in your investments.
You should consult a financial planner or accountant to see what options are available to you.
What precious metals do you have that you can invest in for your retirement?
These precious metals are among the most attractive investments. Both are easy to sell and can be bought easily. They are a great way to diversify your portfolio.
Gold: This is the oldest form of currency that man has ever known. It is also extremely safe and stable. It is a good way for wealth preservation during uncertain times.
Silver: Silver has been a favorite among investors for years. It's an ideal choice for those who prefer to avoid volatility. Silver tends instead to go up than down, which is unlike gold.
Platinum: This precious metal is also becoming more popular. Like gold and silver, it's very durable and resistant to corrosion. It is, however, more expensive than its competitors.
Rhodium. Rhodium is used as a catalyst. It is also used as a jewelry material. It is also very affordable in comparison to other types.
Palladium: Palladium is similar to platinum, but it's less rare. It's also more affordable. It's a popular choice for investors who want to add precious metals into their portfolios.
Can I keep a Gold ETF in a Roth IRA
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
A traditional IRA allows contributions from both employee and employer. Another option is to invest in publicly traded corporations with an Employee Stockownership Plan (ESOP).
An ESOP gives employees tax advantages as they share the stock of the company and the profits it makes. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.
You can also get an Individual Retirement Annuity, or IRA. An IRA allows for you to make regular income payments during your life. Contributions to IRAs will not be taxed
What is the Performance of Gold as an Investment?
Gold's price fluctuates depending on the supply and demand. It is also affected by interest rates.
Because of their limited supply, gold prices can fluctuate. In addition, there is a risk associated with owning physical gold because you have to store it somewhere.
What are the pros & cons of a Gold IRA?
An Individual Retirement Account (IRA), unlike regular savings accounts, doesn't require you to pay tax on interest earned. This makes an IRA great for people who want to save money but don't want to pay tax on the interest they earn. However, there are also disadvantages to this type of investment.
If you withdraw too many funds from your IRA at once, you may lose all your accumulated assets. The IRS may prohibit you from withdrawing funds from your IRA before you are 59 1/2 years of age. A penalty fee will be charged if you decide to withdraw funds.
You will also need to pay fees for managing your IRA. Many banks charge between 0.5%-2.0% per year. Others charge management fees that range from $10 to $50 per month.
You can purchase insurance if you want to keep your money out of a bank. Insurance companies will usually require that you have at least $500,000. You might be required to buy insurance that covers losses up to $500,000.
If you choose to go with a gold IRA, you'll need to determine how much gold you want to use. Some providers limit the number of ounces of gold that you can own. Others let you choose your weight.
It is also up to you to decide whether you want to purchase physical gold or futures. Physical gold is more costly than gold futures. However, futures contracts give you flexibility when buying gold. They enable you to establish a contract with an expiration date.
You'll also need to decide what kind of insurance coverage you want. The standard policy doesn’t provide theft protection or loss due fire, flood, or earthquake. It does provide coverage for damage from natural disasters, however. You might consider purchasing additional coverage if your area is at high risk.
Apart from insurance, you should consider the costs of storing your precious metals. Storage costs are not covered by insurance. In addition, most banks charge around $25-$40 per month for safekeeping.
A qualified custodian is required to help you open a Gold IRA. A custodian maintains track of all your investments and ensures you are in compliance with federal regulations. Custodians cannot sell your assets. Instead, they must keep your assets for as long you request.
After you've determined which type of IRA is best for you, fill out the paperwork indicating your goals. Your plan should include information about the investments you want to make, such as stocks, bonds, mutual funds, or real estate. Your monthly investment goal should be stated.
After completing the forms, send them along with a check or a small deposit to your chosen provider. Once the company has received your application, they will review it and send you a confirmation email.
You should consult a financial planner before opening a Gold IRA. Financial planners have extensive knowledge in investing and can help determine the best type of IRA to suit your needs. You can also reduce your insurance costs by working with them to find lower-cost alternatives.
Is gold a good choice for an investment IRA?
Any person looking to save money is well-served by gold. It can be used to diversify your portfolio. But gold is not all that it seems.
It has been used as a currency throughout history and is still a popular method of payment. It's sometimes called “the world's oldest money”.
But unlike paper currencies, which governments create, gold is mined out of the earth. This makes it highly valuable as it is hard and rare to produce.
The supply and demand factors determine how much gold is worth. The economy that is strong tends to be more affluent, which means there are less gold miners. Gold's value rises as a result.
On the flip side, when the economy slows down, people hoard cash instead of spending it. This causes more gold to be produced, which lowers its value.
This is why investing in gold makes sense for individuals and businesses. If you have gold to invest, you will reap the rewards when the economy expands.
You'll also earn interest on your investments, which helps you grow your wealth. If gold's value falls, you don't have to lose any of your investments.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- Want to Keep Gold in Your IRA at Home? It's not exactly legal – WSJ
investopedia.com
cftc.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement account
How To
Gold IRAs are a growing trend
As investors look for ways to diversify their portfolios and protect themselves against inflation, the gold IRA trend is on the rise.
Owners can invest in gold bars and bullion with the gold IRA. This IRA can be used to grow your wealth tax-free and is an alternative option to stocks and bonds.
An investor can use a gold IRA to manage their assets and not worry about market volatility. Investors can use the gold IRA for protection against inflation and potential problems.
Investors also enjoy the benefits of owning physical gold, which includes its unique properties such as durability, portability, and divisibility.
Additionally, the gold IRA has many benefits. It allows you to quickly transfer your gold ownership to your heirs. The IRS doesn't consider gold a commodity or currency.
Investors looking for financial security are increasingly turning to the gold IRA.
—————————————————————————————————————————————————————————————–
By: Sergio Goschenko
Title: Congressman Warren Davidson Criticizes U.S. Treasury's ‘Deceptive Arguments' Against Crypto
Sourced From: news.bitcoin.com/congressman-warren-davidson-rails-against-treasurys-red-herring-arguments-on-crypto/
Published Date: Fri, 12 Jan 2024 06:30:25 +0000
Did you miss our previous article…
https://altcoinirareview.com/robert-kiyosaki-boosts-bitcoin-holdings-after-sec-approval-of-spot-bitcoin-etfs/
Related posts:
Robert Kiyosaki Reveals His Investment Strategy: A Divergence from Warren Buffett
My Digital Money Review: Is it a Legit Crypto IRA Platform?
Senator Warren ‘Very Worried’ About Federal Reserve Raising Interest Rates, Tipping US Economy Into Recession
7 Best Bitcoin IRA Companies 2023 (Ranked by lowest fees)
