Lawmaker Accuses SEC of Preferring Less Clarity
U.S. Congressman Tom Emmer has criticized the Securities and Exchange Commission (SEC) for intentionally providing less clarity to the crypto market. Emmer accused the SEC of not adhering to the law and losing in court due to its deliberate policy preference. He questioned SEC Chair Gary Gensler's personal agenda in regulating the crypto industry.
Congressman Emmer's Criticism at the House Subcommittee Hearing
Congressman Tom Emmer, House Majority Whip (R-MN), expressed his concerns about the SEC's approach to regulating the crypto industry during a hearing of the House Subcommittee on Digital Assets, Financial Technology, and Inclusion. Emmer criticized the SEC for prioritizing less clarity over more clarity in the marketplace, which he believed was a disservice to the capital markets.
Witness Testimony and Emmer's References
During the congressional hearing, Valerie A. Szczepanik, the director of the SEC's Strategic Hub for Innovation and Financial Technology (Finhub), testified as one of the witnesses. Congressman Emmer referred to a speech given by William Hinman, the former director of the Division of Corporation Finance at the SEC, in which he discussed the concept of tokens morphing from securities to non-securities. Emmer highlighted that Hinman declared ether as not being a security.
Less Clarity for Token Morphing Concept
Congressman Emmer quoted Szczepanik's review of Hinman's speech, where she suggested providing less detail to generate more discussions about the new concept of tokens morphing from securities to non-securities. Emmer expressed his concern that the SEC deliberately preferred less clarity in the market. He questioned whether SEC Chair Gary Gensler shared the same view, but Szczepanik declined to comment on the chair's perspective.
Finhub's Lack of Guidance and Rulemaking Through Enforcement Actions
Congressman Emmer further inquired whether Finhub had issued any guidance on how security laws apply to crypto since Chair Gensler took office. Szczepanik did not provide an answer, leading Emmer to conclude that it seemed like rulemaking was happening through enforcement actions rather than clear guidance. Emmer also asked Szczepanik if she still shared the view that ether is not a security, but she declined to answer, citing an inability to comment on specific assets.
Emmer's Criticism of the SEC and Chair Gensler
Congressman Emmer has been vocal in his criticism of the SEC's enforcement-centric approach to regulating the crypto industry. In June, he supported the SEC Stabilization Act, which aims to remove Gensler as the chair of the securities regulator. Emmer also attached an amendment to the Financial Services and General Government Appropriations Act of 2024, limiting the SEC's authority to carry out enforcement actions against the crypto industry. He has urged Congress to allocate resources to bring more crypto activity and opportunities onshore for the benefit of U.S. national security.
Share Your Opinion
What are your thoughts on Congressman Tom Emmer's criticism of the SEC? Do you believe SEC Chair Gary Gensler has a personal agenda in regulating the crypto industry? Feel free to share your views in the comments section below.
Frequently Asked Questions
What's the advantage of a Gold IRA?
The benefits of a gold IRA are many. It's an investment vehicle that allows you to diversify your portfolio. You control how much money goes into each account and when it's withdrawn.
You also have the option to transfer funds from other retirement plans into a IRA. This is a great way to make a smooth transition if you want to retire earlier.
The best part is that you don't need special skills to invest in gold IRAs. They're available at most banks and brokerage firms. Withdrawals can happen automatically, without any fees or penalties.
However, there are still some drawbacks. Gold is known for being volatile in the past. Understanding why you invest in gold is crucial. Are you looking for growth or safety? Is it for security or long-term planning? Only after you have this information will you make an informed decision.
If you are planning to keep your Gold IRA indefinitely you will want to purchase more than one ounce. A single ounce isn't enough to cover all of your needs. Depending on the purpose of your gold, you might need more than one ounce.
You don't have to buy a lot of gold if your goal is to sell it. Even a single ounce can suffice. However, you will not be able buy any other items with those funds.
Is it possible to hold a gold ETF within a Roth IRA
You may not have this option with a 401(k), however, you might want to consider other options, like an Individual retirement account (IRA).
Traditional IRAs allow for contributions from both employees and employers. You can also invest in publicly traded businesses by creating an Employee Stock Ownership Plan (ESOP).
An ESOP gives employees tax advantages as they share the stock of the company and the profits it makes. The money you invest in the ESOP will be taxed at a lower rate than if it were directly held by the employee.
Also available is an Individual Retirement Annuity. With an IRA, you make regular payments to yourself throughout your lifetime and receive income during retirement. Contributions to IRAs can be made without tax.
How does a gold IRA account work?
The Gold Ira Accounts are tax-free investment options for those who want to make investments in precious metals.
Physical gold bullion coin can be purchased at any time. You don’t have to wait to begin investing in gold.
An IRA allows you to keep your gold forever. When you die, your gold assets won't be subjected to taxes.
Your gold will be passed on to your heirs, without you having to pay capital gains taxes. Your gold is not part of your estate and you don't have to include it in the final estate report.
To open a gold IRA, you will first need to create an individual retirement account (IRA). Once you've completed this step, an IRA administrator will be appointed to your account. This company acts as an intermediary between you and IRS.
Your gold IRA custodian is responsible for handling all paperwork and submitting the required forms to the IRS. This includes filing annual reports.
Once your gold IRA is established, you can purchase gold bullion coins. Minimum deposit is $1,000 A higher interest rate will be offered if you invest more.
You'll have to pay taxes if you take your gold out of your IRA. You will be liable for income taxes and penalties if you take the entire amount.
However, if you only take out a small percentage, you may not have to pay taxes. However, there are some exceptions. If you take out 30% of your total IRA assets or more, you will owe federal income taxes and a 20 percent penalty.
You shouldn't take out more then 50% of your total IRA assets annually. If you do, you could face severe financial consequences.
What proportion of your portfolio should you have in precious metals
Before we can answer this question, it is important to understand what precious metals actually are. Precious metals refer to elements with a very high value relative other commodities. They are therefore very attractive for investment and trading. Gold is today the most popular precious metal.
There are many other precious metals, such as silver and platinum. The price for gold is subject to fluctuations, but stays relatively stable in times of economic turmoil. It also remains relatively unaffected by inflation and deflation.
The general trend is for precious metals to increase in price with the overall market. That said, they do not always move in lockstep with each other. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. Investors expect lower interest rates which makes bonds less appealing investments.
When the economy is healthy, however, the opposite effect occurs. Investors want safe assets such Treasury Bonds and are less inclined to demand precious metals. They become less expensive and have a lower value because they are limited.
You must therefore diversify your investments in precious metals to reap the maximum profits. You should also diversify because precious metal prices can fluctuate and it is better to invest in multiple types of precious metals than in one.
What are the pros and disadvantages of a gold IRA
An Individual Retirement Plan (IRA) has a major advantage over regular savings accounts. It doesn't tax any interest earned. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. However, there are disadvantages to this type investment.
For example, if you withdraw too much from your IRA once, you could lose all your accumulated funds. Also, the IRS may not allow you to make withdrawals from your IRA until you're 59 1/2 years old. 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. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management charges ranging anywhere from $10 to $50.
You can purchase insurance if you want to keep your money out of a bank. Many insurers require that you own at least one ounce of gold before you can make a claim. It is possible that you will be required to purchase insurance that covers losses of up to $500,000.
If you choose to go with a gold IRA, you'll need to determine how much gold you want to use. You may be limited in the amount of gold you can have by some providers. Others allow you to pick your weight.
It is also up to you to decide whether you want to purchase physical gold or futures. Gold futures contracts are more expensive than physical gold. Futures contracts allow you to buy gold with more flexibility. They enable you to establish a contract with an expiration date.
You'll also need to decide what kind of insurance coverage you want. The standard policy doesn’t provide theft protection or loss due fire, flood, or earthquake. It does include coverage for damage due to natural disasters. You might consider purchasing additional coverage if your area is at high risk.
Insurance is not enough. You also need to think about the cost of gold storage. Storage costs are not covered by insurance. Safekeeping costs can be as high as $25-40 per month at most banks.
To open a IRA in gold, you will need to first speak with a qualified custodian. A custodian keeps track of your investments and ensures that you comply with federal regulations. Custodians are not allowed to sell your assets. Instead, they must maintain them for as long a time as you request.
After you have decided on the type of IRA that best suits you, you will need to complete paperwork detailing your goals. The plan should contain information about the types of investments you wish to make such as stocks, bonds or mutual funds. The plan should also include information about how much you are willing to invest each month.
After completing the forms, send them along with a check or a small deposit to your chosen provider. The company will then review your application and mail you a letter of confirmation.
Consider consulting a financial advisor when opening a golden IRA. Financial planners have extensive knowledge in investing and can help determine the best type of IRA to suit your needs. They can help you find cheaper insurance options to lower your costs.
What precious metal should I invest in?
This question depends on how risky you are willing to take, and what return you want. Although gold has traditionally been considered a safe investment choice, it may not be the most profitable. For example, if your goal is to make quick money, gold may not suit you. You should invest in silver if you have the patience and time.
Gold is the best investment if you aren't looking to get rich quick. If you are looking for a long-term investment that will provide steady returns, silver may be a better choice.
Who holds the gold in a gold IRA?
The IRS considers gold owned by an individual to be “a type of money” and is subject taxation.
To be eligible for the tax-free status, you must possess at least $10,000 gold and have had it stored for at least five consecutive years.
The purchase of gold can protect you from inflation and price volatility. But it's not smart to hold it if your only intention is to use it.
If you are planning to sell your gold someday, it is necessary that you report its value. This can affect the capital gains taxes that you owe when cashing in on investments.
To find out what options you have, consult an accountant or financial planner.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (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)
- (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)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- You want to keep gold in your IRA at home? It's not exactly legal – WSJ
irs.gov
investopedia.com
forbes.com
How To
Guidelines for Gold Roth IRA
Start saving as soon as possible to save for your retirement. Start saving as soon as possible, usually at age 50. You can continue to save throughout your career. It's vital to contribute enough money each year to ensure adequate growth on an ongoing basis.
You can also take advantage of tax-free savings opportunities like a traditional 401k (k), SEP IRA (or SIMPLE IRA). These savings vehicles permit you to make contributions, but not pay any tax until your earnings are withdrawn. These savings vehicles are great for those who don't have access or can't get employer matching funds.
It's important to save regularly and over time. You will lose any potential tax advantages if you don't contribute enough.
—————————————————————————————————————————————————————————————–
By: Kevin Helms
Title: The SEC's Deliberate Lack of Clarity in the Crypto Market, Says U.S. Lawmaker
Sourced From: news.bitcoin.com/us-lawmaker-blasts-sec-for-deliberately-obfuscating-crypto-regulations-questions-chair-genslers-personal-agenda/
Published Date: Thu, 07 Dec 2023 04:30:26 +0000
Did you miss our previous article…
https://altcoinirareview.com/the-future-role-of-bitcoin-in-extending-western-civilization-according-to-coinbase-ceo-brian-armstrong/
Related posts:
Ripple’s CLO Says SEC Is Anything But Infallible — Advises ‘Don’t Be Intimidated When They Come Knocking’
7 Best Gold IRA Companies 2023 (Ranked by customer reviews)
SEC Provides Guidance on Spot Bitcoin ETFs, Encourages Cash Creation Method
SEC’s 2024 Agenda: Prioritizing Crypto Oversight and Examinations
