U.S. Senator Elizabeth Warren has expressed her disapproval of the U.S. Securities and Exchange Commission's (SEC) decision to approve spot bitcoin exchange-traded funds (ETFs). She believes that the SEC is mistaken both legally and in terms of policy regarding this matter.
Senator Elizabeth Warren's Concerns
Senator Elizabeth Warren, who has been a vocal skeptic of bitcoin and other cryptocurrencies, immediately criticized the SEC's recent approval of 11 spot bitcoin ETFs. In a tweet, she stated that the SEC's decision is incorrect in terms of both the law and policy.
Warren further emphasized the importance of implementing basic anti-money laundering rules if cryptocurrencies are going to play a larger role in the financial system. She believes that if crypto is allowed to become more deeply integrated into the financial system, it is crucial to ensure compliance with anti-money laundering regulations.
Responses to Senator Warren's Criticism
Warren's tweet received multiple community notes in response. Some argued that there are already robust laws in place to prevent crypto money laundering, citing the enforcement efforts of U.S. agencies such as FinCEN, SEC, and CFTC, as well as state-level initiatives like New York's Bitlicense. Others pointed out that the SEC's decision was influenced by new circumstances brought up in the Grayscale Investments, LLC v. SEC case, as acknowledged by SEC Chair Gary Gensler.
Warren's Stance on Cryptocurrency
Senator Warren has been a consistent critic of cryptocurrency. In 2021, she joined over 100 legislators in a bipartisan note to Biden administration officials, expressing concerns about Hamas using crypto assets to evade U.S. sanctions. She has also introduced the Digital Asset Anti-Money Laundering Act, which aims to strengthen anti-money laundering and counter-terrorism financing frameworks for cryptocurrency companies. However, this bill has been controversial, with some viewing it as a crypto ban.
Contrasting Opinions on Spot Bitcoin ETFs
Interestingly, despite their shared skepticism towards crypto, Senator Warren and JPMorgan CEO Jamie Dimon hold opposing views on spot bitcoin ETFs. While Dimon has famously stated that bitcoin has no value and is primarily used for illicit activities, JPMorgan is serving as a lead authorized participant for Blackrock's spot bitcoin ETF.
What are your thoughts on Senator Elizabeth Warren's criticisms of spot bitcoin ETF approvals? Share your opinion in the comments section below.
Frequently Asked Questions
Should You Buy or Sell Gold?
In the past, gold was considered a haven for investors during economic turmoil. Many people today are moving away from stocks and bonds to look at precious metals, such as gold, as a way to diversify their investments.
Although gold prices have shown an upward trend in recent years, they are still relatively low when compared to other commodities like oil and silver.
Some experts think that this could change in the near future. Experts predict that gold prices will rise sharply in the wake of another global financial collapse.
They also noted that gold is growing in popularity because of its perceived value as well as potential return.
Here are some things to consider if you're considering investing in gold.
- Consider first whether you will need the money to save for retirement. You can save for retirement and not invest your savings in gold. The added protection that gold provides when you retire is a good option.
- Second, you need to be clear about what you are buying before you decide to buy gold. Each one offers different levels security and flexibility.
- Remember that gold is not as safe as a bank account. If you lose your gold coins, you may never recover them.
You should do your research before buying gold. You should also ensure that you do everything you can to protect your gold.
How is gold taxed within a Roth IRA
The tax on an investment account is based on its current value, not what you originally paid. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.
However, if the money is deposited into a traditional IRA/401(k), the tax on the withdrawal of the money is not applicable. 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's rules require that withdrawals be taken within 60 days after you turn 59 1/2. In Massachusetts, you can wait until April 1st. And in New York, you have until age 70 1/2 . To avoid penalties, you should plan ahead and take distributions as soon as possible.
How is gold taxed in an IRA?
The fair market value of gold sold is the basis for tax. Gold is not subject to tax when it's purchased. It isn't considered income. If you sell it after the purchase, you will get a tax-deductible gain if you increase the price.
As collateral for loans, gold is possible. Lenders look for the highest return when you borrow against assets. For gold, this means selling it. The lender might not do this. They may keep it. They may decide to resell it. Either way, you lose potential profit.
So to avoid losing money, you should only lend against your gold if you plan to use it as collateral. 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 is also an excellent way to diversify you portfolio. But gold is not all that it seems.
It has been used as a currency throughout history and is still a popular method of payment. It's often referred to as “the world's oldest currency.”
But unlike paper currencies, which governments create, gold is mined out of the earth. This makes it highly valuable as it is hard and rare to produce.
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. Gold's value rises as a result.
On the flipside, people may save cash rather than spend it when the economy slows. This results in more gold being produced, which drives down its value.
This is why it makes sense to invest in gold for individuals and companies. If you invest in gold, you'll benefit whenever the economy grows.
Additionally, you'll earn interest on your investments which will help you grow your wealth. Plus, you won't lose money if the value of gold drops.
Is it a good retirement strategy to buy gold?
Although it may not look appealing at first, buying gold for investment is worth considering when you consider the global average gold consumption per year.
The best form of investing is physical bullion, which is the most widely used. There are many ways to invest your gold. You should research all options thoroughly before making a decision on which option you prefer.
If you don't want to keep your wealth safe, buying shares in companies that extract gold and mining equipment could be a better choice. Owning gold stocks should work well if you need cash flow from your investment.
ETFs are an exchange-traded investment that allows you to gain exposure to the market for gold. You hold gold-related securities and not actual gold. These ETFs can include stocks of precious metals refiners and gold miners.
What are some of the advantages and disadvantages to 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.
To give an example, if your IRA is withdrawn too often, you can lose all your accumulated funds. You might also not be able to withdraw from your IRA until the IRS deems you to be 59 1/2. If you do decide to withdraw funds from your IRA, you'll likely need to pay a penalty fee.
You will also need to pay fees for managing your IRA. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management fees ranging from $10 to $50.
If you prefer your money to be kept out of a bank, then you will need insurance. A majority of insurance companies require that you possess a minimum amount gold to be eligible for a claim. You may be required by some insurers to purchase insurance that covers losses as high as $500,000.
If you are considering a Gold IRA, you need to first decide how much of it you would like to use. 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. Gold futures contracts are more expensive than physical gold. However, futures contracts give you flexibility when buying gold. They allow you to set up a contract with a specific expiration date.
Also, you will need to decide on the type of insurance coverage you would like. Standard policies don't cover theft protection, loss due to fire, flood or earthquake. However, it does cover damage caused by natural disasters. You may consider adding additional coverage if you live in an area at high risk.
Insurance is not enough. You also need to think about the cost of gold storage. Storage costs will not be covered by insurance. Safekeeping costs can be as high as $25-40 per month at most banks.
A qualified custodian is required to help you open a Gold IRA. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians are not allowed to sell your assets. Instead, they must hold them as long as you request.
Once you've chosen the best type of IRA for you, you need to fill in paperwork describing your goals. Information about your investments such as stocks and bonds, mutual fund, or real property should be included in your plan. 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. Once the company has received your application, they will review it and send you a confirmation email.
When opening a gold IRA, you should consider using a financial planner. A financial planner is an expert in investing and can help you choose the right type of IRA for you. They can also help reduce your costs by suggesting cheaper options for purchasing insurance.
How does gold perform as an investment?
Supply and demand determine the gold price. Interest rates are also a factor.
Due to their limited supply, gold prices fluctuate. In addition, there is a risk associated with owning physical gold because you have to store it somewhere.
Statistics
- (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)
- 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)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's not exactly legal – WSJ
cftc.gov
How To
Gold Roth IRA guidelines
The best way to invest for retirement is by starting early. Start saving as soon and as often as you're eligible (usually around 50 years old) and keep going until retirement. It is essential to save enough money each year in order to maintain a steady growth rate.
You may also wish to take advantage of tax-free investments such as a SIMPLE IRA, SEP IRA, and traditional 401(k). These savings vehicles allow you the freedom to contribute without having to pay tax on your earnings until they are withdrawn. These savings vehicles are great for those who don't have access or can't get employer matching funds.
Savings should be done consistently and regularly over time. If you aren't contributing the maximum amount permitted, you could miss out on tax benefits.
—————————————————————————————————————————————————————————————–
By: Kevin Helms
Title: Senator Elizabeth Warren Criticizes SEC's Approval of Spot Bitcoin ETFs
Sourced From: news.bitcoin.com/senator-elizabeth-warren-says-sec-is-wrong-for-approving-spot-bitcoin-etfs/
Published Date: Sat, 13 Jan 2024 00:30:55 +0000
Related posts:
Senator Warren ‘Very Worried’ About Federal Reserve Raising Interest Rates, Tipping US Economy Into Recession
Financial Watchdog Urges SEC to Reject Spot Bitcoin ETFs, Citing Investor Harm
Congressman Warren Davidson Criticizes U.S. Treasury’s ‘Deceptive Arguments’ Against Crypto
Concerns Mount Over Potential SEC Rejection of Spot Bitcoin ETFs, Analyst Weighs In
