JPMorgan's Warning: Crypto Regulations in the US Won't Ease
Global investment bank JPMorgan has cautioned investors that despite the Securities and Exchange Commission (SEC) losing several court cases against crypto firms, crypto regulations in the US are unlikely to ease. JPMorgan's analysts stated that the industry remains largely unregulated, making it unclear whether regulatory tightening will significantly decrease going forward.
JPMorgan Analysts Predict Continued Regulatory Tightening
Last week, JPMorgan's analysts explained in a note that they expect crypto regulations in the US to remain tight, even after the SEC's legal defeats against crypto firms. While there is optimism in the crypto space regarding the potential approval of spot bitcoin exchange-traded funds (ETFs) by the SEC, the analysts cautioned that such approval does not indicate a complete regulatory shift towards the crypto industry.
The analysts referenced two legal cases where the courts ruled against the SEC in favor of Ripple Labs and Grayscale Investments. Despite these rulings, JPMorgan emphasized that it is uncertain whether the regulatory tightening will ease due to the lack of regulation in the industry.
The analysts also stated that the memories of the FTX fraud are still fresh, and they don't believe that the above-mentioned legal cases will change the stance of US lawmakers. They stressed that crypto regulations in the US are still pending.
JPMorgan Analysts Skeptical of Spot Bitcoin ETFs' Impact on the Market
JPMorgan's analysts expressed skepticism about the impact of spot bitcoin ETFs on the crypto market. While many in the industry anticipate that the approval of spot bitcoin ETFs by the SEC will drive demand for BTC and attract traditional investors, the analysts believe that these ETFs will primarily draw investment from existing bitcoin products.
According to JPMorgan, spot bitcoin ETFs are likely to attract investment from products such as Grayscale's bitcoin trust (GBTC), upcoming ETFs, and bitcoin mining firms. The analysts view this shift as a relative value trade, as several of these bitcoin products currently trade at a premium or reduced discount compared to the past.
SEC Chairman Gary Gensler recently revealed that the regulator is considering multiple spot bitcoin ETF applications, with JPMorgan stating in September that it expects the SEC to approve multiple spot bitcoin ETFs simultaneously. Bitcoin advocate Michael Saylor, chairman of Microstrategy, has predicted that the demand for BTC will double following the halving and the approval of spot bitcoin ETFs.
What Lies Ahead for US Crypto Regulations?
What is your opinion on JPMorgan's outlook on bitcoin and the potential easing of US crypto regulations following the SEC's losses against Ripple and Grayscale? Share your thoughts in the comments section below.
Frequently Asked Questions
What is the Performance of Gold as an Investment?
Gold's price fluctuates depending on the supply and demand. Interest rates are also a factor.
Gold prices are volatile due to their limited supply. There is also a risk in owning gold, as you must store it somewhere.
Are gold investments a good idea for an IRA?
For anyone who wants to save some money, gold can be a good investment. You can also diversify your portfolio by investing in gold. But gold is not all that it seems.
It's been used throughout history as a currency, and even today, it remains a popular form of payment. It is often called “the oldest currency in the world.”
Gold is not created by governments, but it is extracted from the earth. Because it is rare and difficult to make, it is extremely valuable.
The supply-demand relationship determines the gold price. 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 flipside, people may save cash rather than spend it when the economy slows. This results in more gold being produced, which drives down its value.
This is why investing in gold makes sense for individuals and businesses. If you make an investment in gold, you can reap the economic benefits whenever the economy is growing.
In addition to earning interest on your investments, this will allow you to grow your wealth. Plus, you won't lose money if the value of gold drops.
Can I buy gold with my self-directed IRA?
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. You can also transfer funds from an existing retirement fund.
Individuals can contribute as much as $5,500 per year ($6,500 if married filing jointly) to a traditional IRA. Individuals can contribute up to $1,000 annually ($2,000 if married and filing jointly) directly to a Roth IRA.
If you do decide to invest in gold, you'll want to consider purchasing physical bullion rather than investing in futures contracts. Futures contracts are financial instruments based on the price of gold. They let you speculate on future price without having to own the metal. But physical bullion refers to real gold and silver bars you can carry in your hand.
Should You Buy Gold?
Gold was once considered an investment safe haven during times of economic crisis. Today, many people are looking to precious metals like gold and avoiding traditional investments like bonds and stocks.
While gold prices have been rising in recent years they are still low relative to other commodities, such as silver and oil.
Some experts think that this could change in the near future. According to them, gold prices could soar if there is another financial crisis.
They also note that gold is increasingly popular because of its perceived intrinsic value and potential return.
These are some important things to remember if your goal is to invest in gold.
- The first thing to do is assess whether you actually need the money you're putting aside for retirement. You can save for retirement and not invest your savings in gold. That said, gold does provide an additional layer of protection when you reach retirement age.
- You should also be aware of what you are getting into before you buy gold. There are many types of gold IRA accounts. Each offers varying levels of flexibility and security.
- Last but not least, gold doesn't provide the same level security as a savings account. You may lose your gold coins and never be able to recover them.
So, if you're thinking about buying gold, make sure you do your research first. And if you already own gold, ensure you're doing everything possible to protect it.
How much money should I put into my Roth IRA?
Roth IRAs can be used to save taxes on your retirement funds. These accounts cannot be withdrawn until you turn 59 1/2. If you decide to withdraw some of your contributions, you will need to follow certain rules. First, your principal (the deposit amount originally made) is not transferable. This means that regardless of how much you contribute to an account, you cannot take out any more than you initially contributed. You must pay taxes on the difference if you want to take out more than what you initially contributed.
You cannot withhold your earnings from income taxes. So, when you withdraw, you'll pay taxes on those earnings. Consider, for instance, that you contribute $5,000 per year to your Roth IRA. Let's say you earn $10,000 each year after contributing. The federal income tax on your earnings would amount to $3,500. That leaves you with only $6,500 left. Because you can only withdraw what you have initially contributed, this is all you can take out.
If you took $4,000 from your earnings, you would still owe taxes for the $1,500 remaining. In addition, 50% of your earnings will be subject to tax again (half of 40%). Even though you had $7,000 in your Roth IRA account, you only received $4,000.
Two types of Roth IRAs are available: Roth and traditional. Traditional IRAs allow pre-tax contributions to be deducted from your taxable tax income. When you retire, you can use your traditional IRA to withdraw your contribution balance plus interest. A traditional IRA can be withdrawn up to the maximum amount allowed.
Roth IRAs are not allowed to allow you deductions for contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. Unlike a traditional IRA, there is no minimum withdrawal requirement. You don't have to wait until you turn 70 1/2 years old before withdrawing your contribution.
What precious metals could you invest in to retire?
These precious metals are among the most attractive investments. Both can be easily bought and sold, and have been around since forever. They are a great way to diversify your portfolio.
Gold: Gold is one of man's oldest forms of currency. It is very stable and secure. This makes it a good option to preserve wealth in uncertain times.
Silver: Silver is a popular investment choice. It's a good choice for those who want to avoid volatility. Unlike gold, silver tends to go up instead of down.
Platinum: This precious metal is also becoming more popular. It is very durable and resistant against corrosion, much like silver and gold. It is however more expensive than its counterparts.
Rhodium: Rhodium is used in catalytic converters. It is also used for jewelry making. 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 much more affordable. This is why it has become a favourite among investors looking for precious metals.
- 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)
- (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)
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Yahoo Finance – Barrick Gold Corporation Stock Price, News & Quote – Barrick Gold Corporation (GOLD).
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement accounts
The History of Gold as an Asset
From the very beginning of time, gold was a currency. It was popular because of its purity, divisibility. uniformity. scarcity and beauty. Due to its value, it was also internationally traded. There were different measures and weights for gold, as there was no standard to measure it. For example in England, a pound sterling equals 24 carats. In France, a livre tournois equals 25. Carats of golden. Germany had one mark which equals 28. Carats.
In the 1860s, the United States began to issue American coins made from 90% copper, 10% Zinc, and 0.942 Fine Gold. This led to a decline in demand for foreign currencies, which caused their price to increase. At this point, the United States minted large amounts of gold coins, causing the price of gold to drop. The U.S. government was unable to pay its debts due to too much money being in circulation. To do so, they decided to sell some of the excess gold back to Europe.
Most European countries distrusted the U.S. Dollar and began to accept gold as payment. However, many European nations stopped using gold to pay after World War I and started using paper currency instead. The price of gold has risen significantly since then. Even though gold's price fluctuates, it is still one of the most secure investments you could make.
By: Kevin Helms
Title: JPMorgan: US Crypto Regulations Unlikely to Ease Despite SEC Legal Defeats
Sourced From: news.bitcoin.com/jpmorgan-us-crypto-regulations-unlikely-to-ease-despite-sec-legal-defeats/
Published Date: Mon, 13 Nov 2023 01:00:54 +0000