SEC Commissioner Hester Peirce Expresses Frustration over Delay in Spot Bitcoin ETF Approval
SEC Commissioner Hester Peirce has voiced her criticism of the agency for the prolonged delay in approving spot bitcoin exchange-traded funds (ETFs). In a statement, she emphasized that the arbitrary and capricious treatment of applications in this area not only damages the reputation of the SEC but also hinders its effectiveness in regulating the markets.
Approval of 11 Spot Bitcoin ETFs by the SEC Brings an End to a Prolonged Saga
Commissioner Peirce's remarks came following the recent approval of 11 spot bitcoin exchange-traded funds (ETFs) by the SEC. Peirce described this development as the conclusion of an unnecessary yet significant saga that had spanned over a decade. She highlighted that the Commission's approval would have taken much longer if it were not for a decision by the DC Circuit.
Commissioner Peirce Highlights the Success of Bitcoin-Based Products in Other Regulatory Regimes
Commissioner Peirce pointed out that bitcoin-based products have been trading successfully under other regulatory regimes for years. She emphasized that the Commission should have taken comfort from the smooth trading and launch of these products, even during times of market stress and volatility. However, the SEC had, until now, been reluctant to permit spot bitcoin ETFs in the US markets.
As a result, retail investors had resorted to alternative, less efficient methods of gaining exposure to bitcoin and the crypto market. One such method was through bitcoin futures exchange-traded funds, which received approval from the Commission. Commissioner Peirce acknowledged that these futures-based products were more complex and difficult to manage compared to spot products, resulting in higher costs for investors. However, the SEC had persisted in denying the approval of spot bitcoin ETFs until a court intervention.
Commissioner Peirce Criticizes the SEC's Weak Explanation for the Delay
Commissioner Peirce expressed her dissatisfaction with the Commission's response, describing it as a weak explanation for the change of heart. In the past, the SEC had rejected applications based on concerns about the immaturity of the bitcoin market and potential manipulation. Peirce argued that the Commission had wasted opportunities over a decade to fulfill its duty. If the same standard applied to other commodity-based exchange-traded products (ETPs) had been used, spot bitcoin ETFs could have been approved years ago.
Despite the recent approval, Commissioner Peirce noted that the harms caused by the inconsistent treatment of spot bitcoin products remain. She emphasized that the SEC's arbitrary and capricious approach to applications in this area would continue to damage its reputation beyond the crypto industry. The diminishing trust from the public will also hinder the Commission's ability to effectively regulate the markets.
What are your thoughts on SEC Commissioner Hester Peirce's stance on spot bitcoin ETFs? Share your opinions in the comments section below.
Frequently Asked Questions
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 another retirement account if you already have one.
Individuals can contribute as much as $5,500 per year ($6,500 if married filing jointly) to a traditional IRA. Individuals can contribute up $1,000 per annum ($2,000 if they are married and jointly) directly to a Roth IRA.
You should consider buying physical gold bullion if you decide to invest in it. Futures contracts are financial instruments based on the price of gold. These financial instruments allow you to speculate about future prices without actually owning the metal. However, physical bullion is real gold or silver bars you can hold in your hands.
What should I pay into my Roth IRA
Roth IRAs are retirement accounts that allow you to withdraw your money tax-free. You cannot withdraw funds from these accounts until you reach 59 1/2. However, if you do decide to take out some of your contributions before then, there are specific rules you must follow. First, your principal (the deposit amount originally made) is not transferable. You cannot withdraw more than the original amount you contributed. If you are able to take out more that what you have initially contributed, you must pay taxes.
The second rule is that you cannot withdraw your earnings without paying income taxes. You will pay income taxes when you withdraw your earnings. Consider, for instance, that you contribute $5,000 per year to your Roth IRA. Let's also say that you earn $10,000 per annum after contributing. On the earnings, you would be responsible for $3,500 federal income taxes. 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.
Therefore, even if you take $4,000 out of your earnings you still owe taxes on $1,500. In addition, 50% of your earnings will be subject to tax again (half of 40%). So even though your Roth IRA ended up having $7,000, you only got $4,000.
There are two types: Roth IRAs that are traditional and Roth. Traditional IRAs allow you to deduct pretax contributions from 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 don't allow you deduct contributions. But once you've retired, you can withdraw the entire contribution amount plus any accrued interest. There is no minimum withdrawal amount, unlike traditional IRAs. Your contribution can be withdrawn at any age, not just when you reach 70 1/2.
Should you Invest In Gold For Retirement?
This will depend on how much money and whether you were able to invest in gold at the time that you started saving. Consider investing in both.
In addition to being a safe investment, gold also offers potential returns. Retirees will find it an attractive investment.
While most investments offer fixed rates of return, gold tends to fluctuate. Its value fluctuates over time.
But this doesn't mean you shouldn't invest in gold. Instead, it just means you should factor the fluctuations into your overall portfolio.
Another advantage of gold is its tangible nature. Gold can be stored more easily than stocks and bonds. It can be easily transported.
You can always access your gold if it is stored in a secure place. You don't have to pay storage fees for physical gold.
Investing in gold can help protect against inflation. Gold prices are likely to rise with other commodities so it is a good way of protecting against rising costs.
A portion of your savings can be invested in something that doesn't go down in value. Gold rises in the face of a falling stock market.
Another advantage to investing in gold is the ability to sell it whenever you wish. You can also liquidate your gold position at any time you need cash, just like stocks. You don't even need to wait for your retirement.
If you do decide to invest in gold, make sure to diversify your holdings. You shouldn't try to put all of your eggs into one basket.
Also, don't buy too much at once. Start with just a few drops. You can add more as you need.
It's not about getting rich fast. It is to create enough wealth that you no longer have to depend on Social Security.
Although gold might not be the right investment for everyone it could make a great addition in any retirement plan.
- 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)
- (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 take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement account
Investing with gold or stocks
Gold investing as an investment vehicle can seem extremely risky these days. This is because many people believe that gold investment is no longer profitable. This belief is based on the fact that gold prices are being driven down by global economic conditions. They fear that investing in gold will result in a loss of money. In reality, however there are still many significant benefits to gold investing. Below we'll look at some of them.
Gold is the oldest known form of currency. It has been in use for thousands of year. It was used by many people around the globe as a currency store. Even today, countries such as South Africa continue to rely heavily on it as a form of payment for their citizens.
When deciding whether to invest in gold, the first thing you need to do is to decide what price per gram you are willing to pay. If you're interested in buying gold bullion, it is crucial that you decide how much per gram. If you don't know your current market rate, you could always contact a local jeweler and ask them what they think the price is.
It is also worth noting that although gold prices have declined recently, the cost of producing gold has increased. So while the price of gold has declined, production costs haven't changed.
Another thing to remember when thinking about whether or not you should buy gold is the amount of gold you plan on purchasing. It makes sense to save any gold you don't need to purchase if your goal is to use it for wedding rings. It is worth considering if you intend to use it for long-term investment. It is possible to make a profit by selling your gold at higher prices than when you purchased it.
We hope this article has given you an improved understanding of gold investment tools. We recommend that you investigate all options before making any major decisions. Only then will you be able to make an informed decision.
By: Kevin Helms
Title: SEC Commissioner Criticizes Delay in Approving Spot Bitcoin ETFs
Sourced From: news.bitcoin.com/sec-commissioner-criticizes-delay-in-spot-bitcoin-etf-approval-we-squandered-a-decade-of-opportunities/
Published Date: Sat, 13 Jan 2024 05:00:44 +0000