SEC Prioritizes Crypto Enforcement
The U.S. Securities and Exchange Commission (SEC) saw a significant surge in crypto-related enforcement actions in 2023, with a 50% increase compared to the previous year, according to a report by Cornerstone Research. The SEC continues to prioritize cryptocurrency-related enforcement, bringing 46 enforcement actions against various participants in the digital-asset market.
Record-Breaking Enforcement Actions
Cornerstone Research's report, titled "SEC Cryptocurrency Enforcement," reveals that the SEC's enforcement focus on digital assets reached an all-time high in 2023. Last year, the regulatory body initiated 46 enforcement actions, the highest number since 2013 and a 53% increase from 2022.
In the first quarter of 2023 alone, the SEC brought 20 actions, marking the highest number of enforcement actions in a single quarter.
Types of Enforcement Actions
Out of the 46 enforcement actions, the SEC filed 26 litigations in U.S. federal courts and 20 administrative proceedings in 2023. The number of administrative proceedings tripled from the previous year, while the number of litigations increased slightly. As a result of settlements, the SEC imposed $281 million in monetary penalties.
Initial coin offerings (ICOs) accounted for approximately 37% of the SEC's enforcement actions in 2023, a decrease from the 47% reported in 2022. Among the 17 ICO-related actions, 82% involved allegations of fraud. Interestingly, the SEC initiated two administrative proceedings related to non-fungible tokens (NFTs) for the first time.
Individuals and Firms Targeted
In 2023, the SEC brought charges against 124 individuals or entities in cryptocurrency enforcement actions. Of these, 54% were individuals, while 46% represented firms. It is worth noting that the percentage of enforcement actions targeting individuals exclusively decreased from 50% in the previous year to 39%.
What's Next for SEC Crypto Enforcement?
SEC Chair Gensler has highlighted that enforcement is a means to an end, rather than the ultimate goal. However, the number of enforcement actions in the crypto space has significantly increased over the past two years. The SEC's continued focus on crypto enforcement aims to ensure investor protection and maintain market integrity.
Share Your Thoughts
What are your thoughts on the record-breaking enforcement actions by the SEC against individuals and firms in the crypto space? Let us know in the comments section below.
Frequently Asked Questions
Should You Purchase Gold?
In the past, gold was considered a haven for investors during economic turmoil. Many people are shifting away from traditional investments like bonds or stocks to instead look toward precious metals such gold.
While gold prices have been rising in recent years they are still low relative to other commodities, such as silver and oil.
Experts believe this could change soon. They say that gold prices could rise dramatically with another global financial crisis.
They also pointed out that gold is gaining popularity due to its perceived value, and potential return.
Consider these things if you are thinking of investing in gold.
- First, consider whether or not you need the money you're saving for retirement. It is possible to save enough money to retire without investing in gold. However, you can still save for retirement without putting your savings into gold.
- Second, be sure to understand your obligations before you purchase gold. Each one offers different levels security and flexibility.
- Keep in mind that gold may not be as secure as a bank deposit. You may lose your gold coins and never be able to recover them.
If you are thinking of buying gold, do your research. And if you already own gold, ensure you're doing everything possible to protect it.
Can I own a gold ETF inside a Roth IRA
While a 401k may not offer this option for you, it is worth considering other options, such an Individual Retirement Plan (IRA).
Traditional IRAs allow contributions from both the employer and employee. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.
An ESOP gives employees tax advantages as they share the stock of the company and the profits it makes. The money invested in the ESOP is then taxed at lower rates than if it were held directly in the hands of the employee.
Also available is an Individual Retirement Annuity. An IRA allows for you to make regular income payments during your life. Contributions made to IRAs are not taxable.
What tax is gold subject in an IRA
The tax on the sale of gold is based on its fair market value when sold. 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.
Loans can be secured with gold. Lenders look for the highest return when you borrow against assets. This usually involves selling your gold. There's no guarantee that the lender will do this. They may keep it. They might decide to sell it. Either way you will lose potential profit.
If you plan on using your gold as collateral, then you shouldn't lend against it. It's better to keep it alone.
What is a Precious Metal IRA (IRA)?
You can diversify your retirement savings by investing in precious metal IRAs. This allows you to invest in gold, silver and platinum as well as iridium, osmium and other rare metals. These are called “precious” metals because they're very hard to find and very valuable. They are great investments for your money, and they can protect you from inflation or economic instability.
Bullion is often used to refer to precious metals. Bullion refers actually to the metal.
Bullion can be purchased via a variety of channels including online sellers, large coin dealers, and grocery stores.
A precious metal IRA allows you to invest directly in bullion, rather than buying stock shares. You'll get dividends each year.
Precious metal IRAs are not like regular IRAs. They don't need paperwork and don't have to be renewed annually. You pay only a small percentage of your gains tax. You also have unlimited access to your funds whenever and wherever you wish.
Is gold a good choice for an investment IRA?
For anyone who wants to save some money, gold can be a good investment. It is also an excellent way to diversify you portfolio. But there is more to gold than meets the eye.
It's been used as a form of payment throughout history. It is often called “the oldest currency in the world.”
But gold, unlike paper currency, which is created by governments, is mined out from the ground. It's hard to find and very rare, making it extremely valuable.
Gold prices fluctuate based on demand and supply. People tend to spend more when the economy is healthy, which means that fewer people are able to mine gold. The result is that gold's value increases.
On the flip side, when the economy slows down, people hoard cash instead of spending it. This means that more gold is produced, which reduces its value.
This is why it makes sense to invest in gold for individuals and companies. You will benefit from economic growth if you invest in gold.
Additionally, you'll earn interest on your investments which will help you grow your wealth. In addition, you won’t lose any money if gold falls in value.
Statistics
- 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)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement plans
bbb.org
finance.yahoo.com
cftc.gov
How To
How to hold physical gold in an IRA
The easiest way to invest is to buy shares in companies that make gold. However, there are risks associated with this strategy. It isn't always possible for these companies to survive. Even if they do survive, there is still the possibility of losing money to fluctuating gold prices.
You can also buy gold directly. You can either open an account with a bank, online bullion dealer, or buy gold directly from a seller you trust. The advantages of this option include the ease of access (you don't need to deal with stock exchanges) and the ability to make purchases when prices are low. It's also easier to see how much gold you've got stored. You will receive a receipt detailing exactly what you paid. You have less risk of theft when investing in stocks.
There are however some disadvantages. There are some disadvantages, such as the inability to take advantage of investment funds and interest rates from banks. You can't diversify your holdings, and you are stuck with the items you have bought. The taxman might also ask you questions about where your gold is located.
Visit BullionVault.com to find out more about gold buying in an IRA.
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By: Kevin Helms
Title: SEC Crypto Enforcement Reached New High in 2023
Sourced From: news.bitcoin.com/sec-crypto-enforcement-reached-new-high-in-2023/
Published Date: Sun, 28 Jan 2024 04:30:53 +0000
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