The U.S. Securities and Exchange Commission (SEC) recently released its enforcement results for the fiscal year 2023, highlighting its efforts in regulating the crypto asset securities space. The SEC's Division of Enforcement has been actively working to protect the investing public and crack down on various violations within the cryptocurrency industry.
Increased Enforcement Actions
The SEC announced that it filed a total of 784 enforcement actions in the fiscal year 2023, which is a 3% increase compared to the previous year. This demonstrates the regulator's dedication to addressing misconduct and ensuring compliance with securities laws.
SEC's Focus on Crypto Asset Securities
The SEC emphasized that fiscal year 2023 was particularly productive for its enforcement efforts in the crypto asset securities sector. The regulator has taken numerous measures to tackle issues such as billion-dollar crypto fraud schemes, unregistered crypto asset offerings, illegal celebrity endorsements, and non-disclosure of compensation by influencers promoting crypto asset securities.
The SEC highlighted several high-profile cases involving prominent players in the cryptocurrency industry. These cases include actions against Terraform Labs and its co-founder Do Kwon, Richard Heart and his controlled entities, former FTX CEO Samuel Bankman-Fried (SBF), Genesis and Gemini, Celsius, Kraken, Nexo, Beaxy, Bittrex, Binance, and Coinbase.
First Actions Against NFT Issuers
In fiscal year 2023, the SEC filed its first actions against non-fungible token (NFT) issuers. Impact Theory LLC and Stoner Cats 2 LLC were charged by the regulator, marking a significant step in regulating the emerging NFT market.
Action Against Influencers
The SEC also took action against influencers who allegedly promoted crypto asset securities without disclosing their compensation. Influencers such as Paul Pierce, Kim Kardashian, Lindsay Lohan, Jake Paul, Michele Mason (Kendra Lust), Miles Parks McCollum (Lil Yachty), Shaffer Smith (Ne-Yo), Aliaune Thiam (Akon), DeAndre Cortez Way (Soulja Boy), and Austin Mahone were involved in these cases.
CFTC's Record Number of Crypto Enforcement Actions
In addition to the SEC's efforts, the Commodity Futures Trading Commission (CFTC) disclosed that it had filed a record number of crypto enforcement actions in the fiscal year 2023. The CFTC's actions represented more than 49% of all actions filed during that period, indicating increased scrutiny and regulation of digital asset commodities.
The SEC's enforcement actions in the crypto industry during fiscal year 2023 demonstrate its commitment to protecting investors and maintaining the integrity of the market. With continued efforts from regulatory bodies like the SEC and CFTC, the crypto industry is expected to become more compliant and secure for all participants.
What are your thoughts on the SEC's enforcement actions? Share your opinions in the comments below.
Frequently Asked Questions
How much should precious metals make up your portfolio?
First, let's define precious metals to answer the question. Precious elements are those elements which have a high price relative to other commodities. This makes them highly valuable for both investment and trading. The most traded precious metal is gold.
But, there are other types of precious metals available, including platinum and silver. The price for gold is subject to fluctuations, but stays relatively stable in times of economic turmoil. It is also unaffected significantly by inflation and Deflation.
In general, prices for precious metals tend increase with the overall marketplace. They do not always move in the same direction. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. This is because investors expect lower rates of interest, which makes bonds less attractive investments.
In contrast, when the economy is strong, the opposite effect occurs. Investors want safe assets such Treasury Bonds and are less inclined to demand precious metals. They are more rare, so they become more expensive and less valuable.
You must therefore diversify your investments in precious metals to reap the maximum profits. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
How much tax is gold subject to in an IRA
The fair market value of gold sold is the basis for tax. You don't have tax to pay when you buy or sell gold. It's not considered income. If you decide to sell it later, there will be a taxable gain if its price rises.
Gold can be used as collateral for loans. Lenders will seek the highest return on your assets when you borrow against them. In the case of gold, this usually means selling it. It's not guaranteed that the lender will do it. They may keep it. They may decide to resell it. The bottom line is that you could lose potential profit in any case.
To avoid losing money, only lend against gold if you intend to use it for collateral. You should leave it alone if you don't intend to lend against it.
Are gold investments a good idea for an IRA?
Any person looking to save money is well-served by gold. It's also a great way to diversify your portfolio. There's more to gold that meets the eye.
It has been used throughout history as currency and it is still a very popular method of payment. It is sometimes called the “oldest currency in the world”.
But gold is mined from the earth, unlike paper currencies that governments create. Because it is rare and difficult to make, it is extremely valuable.
Gold prices fluctuate based on demand and supply. The strength of the economy means people spend more, and so, there is less demand for gold. This results in gold prices rising.
On the other hand, people will save cash when the economy slows and not spend it. This means that more gold is produced, which reduces its value.
This is why investing in gold makes sense for individuals and businesses. You'll reap the benefits of investing in gold when the economy grows.
In addition to earning interest on your investments, this will allow you to grow your wealth. If gold's value falls, you don't have to lose any of your investments.
What precious metals do you have that you can invest in for your retirement?
The best precious metal investments are gold and silver. They're both easy to buy and sell and have been around forever. If you want to diversify your portfolio, you should consider adding them to your list.
Gold: The oldest form of currency known to man is gold. It is also extremely safe and stable. It's a great way to protect wealth in times of uncertainty.
Silver: Silver is a popular investment choice. This is a great choice for people who want to avoid volatility. Unlike gold, silver tends to go up instead of down.
Platinium is another precious metal that is becoming increasingly popular. It's like silver or gold in that it is durable and resistant to corrosion. However, it's much more expensive than either of its counterparts.
Rhodium – Rhodium is used to make catalytic conversions. It is also used as a jewelry material. It is also quite affordable compared with other types of precious metals.
Palladium – Palladium is an alternative to platinum that's more common but less scarce. It's also much more affordable. It is a preferred choice among investors who are looking to add precious materials to their portfolios.
Can I buy gold with my self-directed IRA?
Your self-directed IRA can be used to purchase gold, but first you need to open an account with a brokerage firm such as TD Ameritrade. You can also transfer funds from another retirement account if you already have one.
The IRS allows individuals up to $5.500 annually ($6,500 if you are married and filing jointly). This can be contributed 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 allow you to speculate on future prices without owning the metal itself. But physical bullion refers to real gold and silver bars you can carry in your hand.
What Does Gold Do as an Investment Option?
Gold's price fluctuates depending on the supply and demand. It is also affected by interest rates.
Due to limited supplies, gold prices are subject to volatility. There is also a risk in owning gold, as you must store it somewhere.
- (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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- 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)
- 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)
- Yahoo Finance provides information about Barrick Gold Corporation's (GOLD) stock price, news, quote, and history.
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement accounts
The best way online to buy gold or silver
Understanding how gold works is essential before you buy it. Precious metals like gold are similar to platinum. It's very rare, and it is often used as money for its durability and resistance. It is difficult to use so people prefer to buy jewelry made from it to gold bars.
Today, there are two types available in gold coins: one is legal tender and the other is bullion. The legal tender coins are issued for circulation in a country. They usually have denominations such as $1, $5, $10, and so on.
Bullion coin are not intended for investment. However, their value will increase with inflation.
They cannot be used in currency exchanges. For example, if a person buys $100 worth of gold, he/she gets 100 grams of gold with a value of $100. The buyer receives 1 gram of gold for every dollar spent.
Next, you need to find out where to buy gold. There are many options for buying gold directly from dealers. First off, you can go through your local coin shop. You might also consider going through a reputable online seller like eBay. You might also consider buying gold from an online private seller.
Private sellers are individuals who offer to sell gold at retail or wholesale prices. You pay a commission fee between 10% and 15% for each transaction when you sell gold through private sellers. A private seller will usually return less money than a coin shop and eBay. This is a great option for gold investing because you have more control over the item’s price.
Another option for buying gold is to invest in physical gold. It is easier to store physical gold than paper certificates. But, you still have to take care of it. You need to make sure that your physical gold is safe by storing it in an impenetrable container like a vault or safety depositbox.
When buying gold on your own, you can visit a bank or a pawnshop. A bank will provide you with a loan that allows you to purchase the amount of gold you desire. Customers can borrow money from pawnshops to purchase items. Banks tend to charge higher interest rates, while pawnshops are typically lower.
Finally, another way to buy gold is to simply ask someone else to do it! Selling gold can also be done easily. Contact a company such as GoldMoney.com, and you can set up a simple account and start receiving payments immediately.
By: Kevin Helms
Title: SEC Reports Productive Year for Crypto Enforcement Actions in 2023
Sourced From: news.bitcoin.com/sec-announces-highly-productive-year-for-crypto-enforcement-actions/
Published Date: Thu, 16 Nov 2023 00:30:54 +0000