Better Markets Expresses Concern
Better Markets, an American nonprofit organization dedicated to promoting public interest in financial markets and the economy, has expressed dismay at the recent approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). The organization argues that instead of protecting crypto investors, the SEC has enabled the mass marketing of a known worthless, volatile, and fraud-filled financial product to Main Street Americans.
Law Does Not Support Approval
In a press statement issued on January 11, 2024, Better Markets emphasized that the law does not support the SEC's decision to approve ETF applications. The organization also dismissed claims that a U.S. court ruling in favor of crypto asset manager Grayscale had forced the SEC's hand. The court ruling, which occurred in August 2023, deemed the SEC's rejection of Grayscale's spot Bitcoin ETF as arbitrary and capricious.
SEC's Failure to Explain
Contrary to suggestions that the SEC was obligated to approve the ETFs due to the court ruling, Better Markets pointed out that the court simply stated that the SEC failed to adequately explain its prior rejection. The organization argued that the SEC could have and should have rejected the ETF applications while providing a more detailed explanation. This explanation should have included evidence of wash trading, with the organization claiming that up to 77.5% of trading volume on unregulated exchanges and as much as 95% of Bitcoin trading could be attributed to wash trading.
Government Endorsement of Cryptocurrencies
Additionally, Better Markets predicted that proponents of Bitcoin (BTC) and cryptocurrencies in general will likely portray the SEC's approval as a form of government endorsement. However, the organization remains critical of BTC and cryptocurrencies, labeling them as worthless financial products favored primarily by speculators, gamblers, and criminals.
Ineffective Crypto Industry Regulation
According to Better Markets, no regulatory body has been able to effectively police the crypto industry. The organization specifically criticized Rostin Behnam, the chairman of the Commodities Futures Trading Commission (CFTC), accusing him of being biased and acting as a crypto cheerleader.
What are your thoughts on Better Markets' critique of the SEC's approval of Bitcoin ETFs? Share your opinions in the comments section below.
Frequently Asked Questions
Should You Open a Precious Metal IRA?
It is essential to be aware of the fact that precious metals do not have insurance coverage before opening an IRA. If you lose money in your investment, nothing can be done to recover it. This includes investments that have been damaged by fire, flooding, theft, and so on.
Investing in physical gold and silver coins is the best way to protect yourself from this type of loss. These items have been around thousands of years and are irreplaceable. These items are worth more today than they were when first produced.
When opening an IRA account, make sure you choose a reputable company offering competitive rates and high-quality products. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.
You won't get any returns until you retire if you open an account. Don't forget the future!
What are the pros and 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 a great choice for people who are looking to save money but don’t want to pay any tax on the interest earned. 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. Also, the IRS may not allow you to make withdrawals from your IRA until you're 59 1/2 years old. If you do withdraw funds, you'll need to pay a penalty.
A disadvantage to managing your IRA is the fact that fees must be paid. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management charges ranging anywhere from $10 to $50.
Insurance will be required if you would like to keep your cash out of banks. Insurance companies will usually require that you have at least $500,000. It is possible that you will be required to purchase insurance that covers losses of 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 restrict the amount you can own in gold. Others let you pick your weight.
You will also have to decide whether to purchase futures or physical gold. Gold futures contracts are more expensive than physical gold. Futures contracts allow you to buy gold with more flexibility. They let you set up a contract that has a specific expiration.
It is also important to choose the type of insurance coverage that you need. Standard policies don't cover theft protection, loss due to fire, flood or earthquake. It does provide coverage for damage from natural disasters, however. If you live near a high-risk region, you might want to consider additional coverage.
In addition to insurance, you'll need to consider the cost of storing your gold. 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 helps you keep track of your investments, and ensures compliance with federal regulations. Custodians don't have the right to sell assets. They must instead keep them for as long as you ask.
Once you've chosen the best type of IRA for you, you need to fill in paperwork describing your goals. The plan should contain information about the types of investments you wish to make such as stocks, bonds or mutual funds. You should also specify how much you want to invest each month.
After completing the forms, send them along with a check or a small deposit to your chosen provider. The company will then review your application and mail you a letter of confirmation.
If you are thinking of opening a gold IRA for retirement, a financial professional is a great idea. A financial planner can help you decide the type of IRA that is right for your needs. They can help you find cheaper insurance options to lower your costs.
What Does Gold Do as an Investment Option?
Gold's price fluctuates depending on the supply and demand. It is also affected negatively by interest rates.
Due to limited supplies, gold prices are subject to volatility. You must also store physical gold somewhere to avoid the risk of it becoming stale.
How is gold taxed by Roth IRA?
Investment accounts are subject to tax based only on their current value and not the amount you originally paid. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.
The money can be withdrawn tax-free if it's deposited in a traditional IRA (or 401(k)). Taxes are only charged on capital gains or dividends earned, which only apply to investments longer than one calendar year.
Each state has its own rules regarding these accounts. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. You can delay until April 1st in Massachusetts. And in New York, you have until age 70 1/2 . To avoid penalty fees, it is important to plan and take distributions in time to pay all your retirement savings.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- (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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
bbb.org
investopedia.com
irs.gov
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.
The gold IRA allows investors to purchase physical gold bars and bullion. It can be used as a tax-free way to grow and it is an alternative investment option for people who are not comfortable with stocks or bonds.
Investors can have confidence in their investments and avoid market volatility with a gold IRA. They can use the gold IRA to protect themselves against inflation and other potential problems.
Investors also benefit from physical gold's unique properties, such as durability and portability.
The gold IRA also offers many other benefits, such as the ability to quickly transfer the ownership of the gold to heirs, and the fact the IRS doesn't consider gold a currency.
Investors who seek financial stability and a safe haven are finding the gold IRA increasingly attractive.
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By: Terence Zimwara
Title: Nonprofit Organization Criticizes SEC's Approval of Bitcoin ETFs
Sourced From: news.bitcoin.com/bitcoin-etfs-enable-the-mass-marketing-of-a-worthless-asset-to-main-street-americans-says-better-markets/
Published Date: Fri, 12 Jan 2024 12:30:29 +0000
