Better Markets Calls on SEC to Reject Spot Bitcoin ETFs
Financial watchdog group Better Markets has issued a plea to the U.S. Securities and Exchange Commission (SEC) to reject spot bitcoin exchange-traded funds (ETFs), citing the potential for "massive investor harm." The organization, known for its advocacy work in financial reform and market regulation, has highlighted a testimonial from U.S. Senator Elizabeth Warren on its website. Better Markets' president, who reportedly has a close relationship with SEC Chairman Gary Gensler, has urged the securities regulator not to enable the "financial carnage" that may follow if these ETFs are approved.
SEC Must Uphold the Law and Decline Spot Bitcoin ETFs
Better Markets recently submitted a supplemental comment letter to the SEC, outlining the reasons why the regulator should reject applications for spot bitcoin exchange-traded products (ETPs), including bitcoin ETFs. The organization, based in Washington, D.C., is an independent, non-profit, and non-partisan group that aims to promote the public interest in financial reform and the economy. In its letter, Better Markets referenced various spot bitcoin ETF proposals, such as those from Blackrock, Vaneck, Ark Invest, Invesco, and Wisdomtree.
"The SEC must uphold the law and decline spot bitcoin ETPs, as they will cause significant harm to investors," Better Markets stated. Dennis Kelleher, cofounder, president, and CEO of Better Markets, further emphasized this sentiment, saying:
"The approval of spot bitcoin ETPs would be an unprecedented mistake that would undoubtedly result in immense harm to investors. The rampant fraud and manipulation prevalent in the bitcoin market means that approving these products would expose millions of American investors and retirees to the exact risks that the SEC is meant to prevent."
Kelleher also warned against the potential consequences of allowing the crypto industry to create and widely distribute a financial product that he views as little more than a worthless gambling chip. He argued that denying the proposed rule changes is necessary in accordance with the law.
Connection Between Better Markets, Senator Warren, and Chairman Gensler
Numerous individuals on social media platforms have highlighted the connection between Better Markets, anti-crypto Senator Elizabeth Warren (D-MA), and SEC Chairman Gary Gensler. Warren's testimonial is prominently featured on the Better Markets website, where she praises the organization's efforts in advocating for financial reform to safeguard the U.S. economy against future crashes.
Regarding Gensler, Fox Business journalist Eleanor Terrett elaborated on the relationship between SEC Chairman Gensler and Better Markets' CEO Kelleher. They served together on President Biden's transition team, and Kelleher has been known for his strong opposition to cryptocurrencies. Kelleher has previously stated that crypto serves no legitimate or socially beneficial purpose, describing it as nothing more than a fraudulent concept that deceives the public.
While some members of the crypto community remain unconvinced by Better Markets' arguments, others have expressed concerns that Gensler may seek to find grounds to reject spot bitcoin ETF applications.
What are your thoughts on whether Better Markets will successfully convince the SEC to reject spot bitcoin ETF applications? Share your opinions in the comments section below.
Frequently Asked Questions
What are the fees associated with an IRA for gold?
An Individual Retirement Account (IRA) fee is $6 per month. This includes account maintenance and any investment costs.
To diversify your portfolio you might need to pay additional charges. These fees will vary depending upon the type of IRA chosen. Some companies offer checking accounts for free, while others charge monthly fees for IRA account.
A majority of providers also charge annual administration fees. These fees range between 0% and 1 percent. The average rate is.25% annually. However, these rates are typically waived if you use a broker like TD Ameritrade.
Is buying gold a good way to save money for retirement?
While buying gold as an investment may seem unattractive at first glance it becomes worth the effort when you consider how much gold is consumed worldwide each year.
The best form of investing is physical bullion, which is the most widely used. You can also invest in gold in other ways. It is best to research all options and make informed decisions based on your goals.
If you don't want to keep your wealth safe, buying shares in companies that extract gold and mining equipment could be a better choice. If you are looking for cash flow from your investment, buying gold stocks will work well.
You can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs usually include stocks of precious metals refiners or gold miners.
Can the government steal your gold?
The government cannot take your gold because you own it. You earned it through hard work. It belongs to you. There may be exceptions to this rule. For example, if you were convicted of a crime involving fraud against the federal government, you can lose your gold. Your precious metals can also be lost if you owe tax to the IRS. However, if you do not pay your taxes, you can still keep your gold even though it is considered property of the United States Government.
How much should I contribute to my Roth IRA account?
Roth IRAs are retirement accounts that allow you to withdraw your money tax-free. The account cannot be withdrawn from until you are 59 1/2. You must adhere to certain rules if you are going to withdraw any of your contributions prior. First, your principal (the deposit amount originally made) is not transferable. You cannot withdraw more than the original amount you contributed. You must pay taxes on the difference if you want to take out more than what you initially contributed.
The second rule is that your earnings cannot be withheld without income tax. So, when you withdraw, you'll pay taxes on those earnings. For example, let's say that you contribute $5,000 to your Roth IRA every year. Let's say you earn $10,000 each year after contributing. You would owe $3,500 in federal income taxes on the earnings. This leaves you with $6,500 remaining. Since you're limited to taking out only what you initially contributed, that's all you could take out.
You would still owe tax on $1,500 if you took out $4,000 of your earnings. On top of that, you'd lose half of the earnings you had taken out because they would be taxed again at 50% (half of 40%). So even though your Roth IRA ended up having $7,000, you only got $4,000.
There are two types if Roth IRAs: Roth and Traditional. A traditional IRA allows for you to deduct pretax contributions of your taxable income. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. A traditional IRA can be withdrawn up to the maximum amount allowed.
Roth IRAs won't let you deduct your contributions. You can withdraw your entire contribution, plus accrued interests, after you retire. There is no minimum withdrawal limit, unlike traditional IRAs. You don't have to wait until you turn 70 1/2 years old before withdrawing your contribution.
How is gold taxed in an IRA?
The fair market value at the time of sale is what determines how much tax you pay on gold sales. When you purchase gold, you don't have to pay any taxes. It is not considered income. If you sell it after the purchase, you will get a tax-deductible gain if you increase the price.
As collateral for loans, gold is possible. Lenders try to maximize the return on loans that you take against your assets. This usually involves selling your gold. It's not guaranteed that the lender will do it. They might just hold onto it. They might decide that they want to resell it. You lose potential profits in either case.
You should not lend against your gold if it is intended to be used as collateral. It is better to leave it alone.
What is a Precious Metal IRA and How Can You Benefit From It?
A precious metal IRA allows for you to diversify your retirement savings in gold, silver, palladium and iridium. These are “precious metals” because they are hard to find, and therefore very valuable. They make excellent investments for your money and help you protect your future from inflation and economic instability.
Precious metals are often referred to as “bullion.” Bullion refers actually to the metal.
Bullion can be bought through many channels, including online retailers, large coins dealers, and some grocery shops.
A precious metal IRA allows you to invest directly in bullion, rather than buying stock shares. This will ensure that you receive annual dividends.
Precious metal IRAs have no paperwork or annual fees. Instead, you pay a small percentage tax on the gains. You also have unlimited access to your funds whenever and wherever you wish.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement funds
investopedia.com
cftc.gov
finance.yahoo.com
How To
The History of Gold as an Asset
From the ancient days to the early 20th Century, gold was a common currency. It was universally accepted due to its purity and divisibility, beauty, scarcity, and durability. Because of its intrinsic value, it was also widely traded. There was no international standard for measuring gold at that time, so different weights and measures were used around the world. For example, one pound sterling in England equals 24 carats; one livre tournois equals 25 carats; one mark equals 28 carats; and so on.
In the 1860s, the United States began issuing American coins made up of 90% copper, 10% zinc, and 0.942 fine gold. This caused a drop in foreign currency demand which resulted in an increase of their prices. The United States began minting large quantities gold coins at this time, which led to a drop in the price. They needed to pay off debt because they had too much money coming into circulation. To do this, they decided that some of their excess gold would be sold back to Europe.
Many European countries began accepting gold in exchange for the dollar because they did not trust it. After World War I, however, many European countries started using paper money to replace gold. The price of gold rose significantly over the years. 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: Financial Watchdog Urges SEC to Reject Spot Bitcoin ETFs, Citing Investor Harm
Sourced From: news.bitcoin.com/watchdog-group-warns-sec-reject-spot-bitcoin-etfs-or-face-financial-carnage/
Published Date: Sat, 06 Jan 2024 22:30:03 +0000
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