Introduction
The U.S. Securities and Exchange Commission (SEC) made headlines on Tuesday when its social media account, known as the X account, announced the approval of spot bitcoin exchange-traded funds (ETFs). However, SEC Chairman Gary Gensler quickly clarified that the post was unauthorized and that the account had been compromised. This unexpected turn of events has led to speculation about a potential internal error at the SEC.
The Initial Announcement
Amidst growing anticipation for the approval of spot bitcoin ETFs, the SEC's X account took to social media to declare that the regulator had approved these ETFs for trading on all registered national securities exchanges. This announcement generated a wave of excitement within the crypto industry and triggered a frenzy on social media.
Gensler's Response
In response to the unauthorized post, SEC Chairman Gary Gensler promptly addressed the situation on the X platform. He clarified that the SEC account had been compromised and emphasized that the regulator had not approved any spot exchange-traded products for listing or trading. Gensler's swift response aimed to rectify the misleading information and reassure investors.
Reactions and Suspicions
Following the unauthorized announcement, the X platform was flooded with comments expressing concerns about the SEC's ability to protect investors. Some accused the regulator of market manipulation in light of the fake news. Prominent bitcoin advocate Jameson Lopp criticized the SEC's inability to secure its social media account and questioned whether they would investigate this incident of market manipulation.
Possible Internal Error
Speculation arose on social media suggesting that the premature announcement was the result of an internal mistake at the SEC. Some individuals believe that the announcement was intended to be released on Wednesday but was mistakenly posted a day earlier. Skybridge Capital founder Anthony Scaramucci expressed doubt about Gensler's explanation, suggesting that an employee may have made the error and that Gensler was deflecting blame.
Expert Opinions
Gabor Gurbacs, the head of digital assets strategy at Vaneck, questioned the feasibility of noticing a bad tweet from an organizational account, correcting it from the chair's account, recovering a hacked social media account, and responding to the incident all within a few minutes. This led him to consider the possibility of an inside job or an accidental premature publication of the message.
Upcoming Approvals
Despite the controversy surrounding the unauthorized announcement, the SEC is still expected to approve multiple spot bitcoin ETFs on the designated deadline day. Cathie Wood's Ark Invest and 21shares have submitted proposals, and ten other applicants have filed their amended registration statements with the SEC. These asset managers anticipate commencing trading of their spot bitcoin ETFs shortly after approval.
Conclusion
The unauthorized announcement of spot bitcoin ETF approval by the SEC's X account caused a stir in the crypto industry and raised questions about the security and reliability of the regulator's social media presence. While Chairman Gary Gensler attributed the incident to a compromised account, some suspect that it may have been an internal error. As the SEC moves forward with the approval process, it remains to be seen how this incident will impact market sentiment and investor trust.
What are your thoughts on this situation? Do you believe the SEC's X account was compromised, or was it an accidental release by someone within the SEC? Share your opinions in the comments below.
Frequently Asked Questions
How do I Withdraw from an IRA with Precious Metals?
First, determine if you would like to withdraw money directly from an IRA. You should also ensure that you have enough money to cover any fees and penalties associated with withdrawing funds.
A taxable brokerage account is a better option than an IRA if you are prepared to pay a penalty for early withdrawals. You will also have to account for taxes due on any amount you withdraw if you choose this option.
Next, determine how much money you plan to withdraw from your IRA. This calculation is affected by many factors, such as the age at which you withdraw the money, the amount of time the account has been owned, and whether your plans to continue contributing to your retirement fund.
Once you know what percentage of your total savings you'd like to convert into cash, you'll need to determine which type of IRA you want to use. Traditional IRAs allow you to withdraw funds tax-free when you turn 59 1/2 while Roth IRAs charge income taxes upfront but let you access those earnings later without paying additional taxes.
Once these calculations have been completed you will need to open an account with a brokerage. Most brokers offer free signup bonuses and other promotions to entice people to open accounts. You can save money by opening an account with a debit card instead of a credit card to avoid paying unnecessary fees.
When you finally get around to making withdrawals from your precious metal IRA, you'll need a safe place where you can store your coins. Some storage facilities will accept bullion bars, others require you to buy individual coins. Before choosing one, consider the pros and disadvantages of each.
Bullion bars require less space, as they don't contain individual coins. However, each coin will need to be counted individually. However, you can easily track the value of individual coins by storing them in separate containers.
Some people prefer to keep coins safe in a vault. Others prefer to store their coins in a vault. Regardless of the method you prefer, ensure that your bullion is safe so that you can continue to enjoy its benefits for many years.
Do you need to open a Precious Metal IRA
Precious metals are not insured. This is the most important fact to know before you open an IRA account. 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.
Protect yourself against this type of loss by investing in physical gold or silver coins. These items have been around for thousands of years and represent real value that cannot be lost. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.
You should choose a reputable firm that offers competitive rates. Consider using a third-party custody company to keep your assets safe and allow you to access them at any time.
If you decide to open an account, remember that you won't see any returns until after you retire. Keep your eyes open for the future.
What are the pros and cons of a gold IRA?
An Individual Retirement Account is a more beneficial option than regular savings accounts. You don't pay taxes on any interest earned. An IRA is a great way to save money and not have to pay taxes on the interest you earn. This type of investment has its downsides.
You may lose all your accumulated savings if you take too much out of your IRA. You might also not be able to withdraw from your IRA until the IRS deems you to be 59 1/2. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
A disadvantage to managing your IRA is the fact that fees must be paid. Most banks charge 0.5% to 2.0% per annum. Other providers charge monthly management costs ranging from $10-50.
Insurance is necessary if you wish to keep your money safe from the 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.
You will need to decide how much gold you wish to use if you opt for a gold IRA. Some providers limit the number of ounces of gold that you can own. Others allow you to pick your weight.
You will also have to decide whether to purchase futures or physical gold. Physical gold is more costly than gold futures. Futures contracts offer flexibility for buying gold. They let you set up a contract that has a specific expiration.
Also, you will need to decide on the type of insurance coverage you would like. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. It does offer coverage for natural disasters. You may consider adding additional coverage if you live in an area at high risk.
Apart from insurance, you should consider the costs of storing your precious metals. Storage costs are not covered by insurance. Additionally, safekeeping is usually charged by banks at around $25-$40 per monthly.
Before you can open a gold IRA you need to contact a qualified Custodian. Custodians keep track of your investments and ensure compliance with federal regulations. Custodians aren't allowed to sell your assets. Instead, they must keep your assets for as long you request.
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.
Once you have completed the forms, you will need to mail them to your provider with a check and a small deposit. The company will review your application and send you a confirmation letter.
Consider consulting a financial advisor when opening a golden IRA. Financial planners are experts at investing and can help you determine which type of IRA is best for you. They can also help you lower your expenses by finding cheaper alternatives to purchasing insurance.
What tax is gold subject in an IRA
The fair value of gold sold to determines the price at which tax is due. You don't have tax to pay when you buy or sell gold. It's not considered income. If you sell it later you will have a taxable profit if the price goes down.
Gold can be used as collateral for loans. Lenders try to maximize the return on loans that you take against your assets. For gold, this means selling it. It's not guaranteed that the lender will do it. They may keep it. They may decide to resell it. You lose potential profits in either case.
If you plan on using your gold as collateral, then you shouldn't lend against it. It's better to keep it alone.
Is gold a good choice for an investment IRA?
If you are looking for a way to save money, gold is a great investment. It can be used to diversify your portfolio. But gold has more to it than meets the eyes.
It has been used as a currency throughout history and is still a 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. That makes it very valuable because it's rare and hard to create.
The supply and demand for gold determine the price of gold. 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.
The flip side is that people tend to save money 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. 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 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 “precious metals” because they are hard to find, and therefore very valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Precious metals are sometimes called “bullion.” Bullion refers only to the actual metal.
Bullion can be purchased through many channels including online retailers and large coin dealers as well as some grocery stores.
A precious metal IRA allows you to invest directly in bullion, rather than buying stock shares. This means you'll receive dividends every year.
Precious Metal IRAs don’t require paperwork nor have annual fees. Instead, you pay a small percentage tax on the gains. Plus, you get free access to your funds whenever you want.
Statistics
- 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)
- 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)
- 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)
- 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)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement account
cftc.gov
irs.gov
bbb.org
How To
How to hold physical gold in an IRA
The most obvious way to invest in gold is by buying shares from companies producing gold. But this investment method has many risks as there is no guarantee of survival. Even if they survive, there's always the risk that they will lose money due fluctuations in gold prices.
Another option is to purchase physical gold. You can either open an account with a bank, online bullion dealer, or buy gold directly from a seller you trust. This option is convenient because you can access your gold when it's low and doesn't require you to deal with stock brokers. It's easier to track how much gold is in your possession. So you can see exactly what you have paid and if you missed any taxes, you will get a receipt. You are also less likely to be robbed than investing in stocks.
However, there can be some downsides. There are some disadvantages, such as the inability to take advantage of investment funds and interest rates from banks. You won't have the ability to diversify your holdings; you will be stuck with what you purchased. Finally, the tax man might ask questions about where you've put your gold!
BullionVault.com is the best website to learn about gold purchases in an IRA.
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By: Kevin Helms
Title: SEC’s Unauthorized Spot Bitcoin ETF Announcement
Sourced From: news.bitcoin.com/secs-spot-bitcoin-etf-approval-post-unauthorized-chair-gary-gensler-says-secs-x-account-was-compromised/
Published Date: Tue, 09 Jan 2024 23:00:11 +0000
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