With the retirement of Rep. Blaine Luetkemeyer (R-Mo.) at the end of 2024, there is a possibility for a more favorable approach towards cryptocurrency regulation in the House Financial Services Committee. Rep. French Hill (R-Ark.) is likely to take the lead in this new era.
Shift in House Financial Services Committee Leadership Could Lead to More Progressive Crypto Legislation
The retirement announcement of U.S. Rep. Blaine Luetkemeyer (R-Mo.) at the end of 2024 could have significant implications for the future of cryptocurrency regulation. This opens up the potential for a more crypto-friendly chairmanship in the House Financial Services Committee, following the departure of the current chair, Patrick McHenry, when his term ends in early 2025.
Rep. Luetkemeyer, who currently serves on the House Financial Services Committee, had shown interest in running for McHenry's chairmanship. However, with his retirement, Rep. French Hill (R-Ark.) emerges as a strong candidate for the position. Hill is well-known for leading the committee's digital assets panel and his involvement in crypto-related legislation, particularly in relation to stablecoins. As the vice-chairman of the House Financial Services Committee, Hill has expressed his intention to introduce and pass two crypto regulation bills in early 2024.
Ron Hammond, the Director of Government Relations at the Blockchain Association, has highlighted Hill's bipartisan approach and his focus on cryptocurrency. While Luetkemeyer was not opposed to crypto, Hammond believes that it would not have been a top priority under his leadership, unlike under Hill or McHenry.
Rep. Hill genuinely believes in the potential of crypto as a new asset class and recognizes its importance in the future. In an interview with Forbes, he emphasized the significance of upcoming crypto-specific legislation:
"I think it says that members of Congress recognize that Web3 innovation, blockchain innovation, the earliest stage of innovation here is growing; that there's a demand among institutional investors and consumers. If we don't facilitate that framework, then you're going to see that engagement move offshore."
As Luetkemeyer and McHenry step down, the GOP Steering Committee will consider various factors, including legislative performance and fundraising capabilities, to decide their replacements in 2025.
Rep. Hill is considered a top contender for the House Financial Services chair position. Other potential candidates include Rep. Bill Huizenga (R-Mich.) and Rep. Andy Barr (R-Ky.), although their chances depend on the Republicans retaining control of the House in the upcoming elections.
What are your thoughts on the possibility of more US politicians embracing crypto? Feel free to share your opinions in the comments section below.
Frequently Asked Questions
What precious metals could you invest in to retire?
Gold and silver are the best precious metal investments. Both are easy to sell and can be bought easily. These are great options to diversify your portfolio.
Gold: This is the oldest form of currency that man has ever known. It's stable and safe. It is a good way for wealth preservation during uncertain times.
Silver: Silver has always been popular among investors. It's an ideal choice for those who prefer to avoid volatility. Silver, unlike gold, tends not to go down but up.
Platinium: Another form of precious metal is platinum, which is becoming more popular. It's durable and resists corrosion, just like gold and silver. It's also more expensive than the other two.
Rhodium: The catalytic converters use Rhodium. It is also used to make jewelry. It is also very affordable in comparison to other types.
Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It's also more affordable. It's a popular choice for investors who want to add precious metals into their portfolios.
What is the best way to hold physical gold?
Gold is money, not just paper currency or coinage. People have been using gold for thousands of years to store their wealth and protect it from economic instability and inflation. Today, investors use gold as part of a diversified portfolio because gold tends to do better during financial turmoil.
Today, many Americans invest in precious metals such as gold and silver rather than stocks and bonds. While owning gold doesn't guarantee you'll make money investing in gold, there are several reasons why it may make sense to consider adding gold to your retirement portfolio.
One reason is that gold historically performs better than other assets during financial panics. The S&P 500 declined 21 percent during the same period. Gold prices increased nearly 100 per cent between August 2011 – early 2013. During those turbulent market conditions, gold was among the few assets that outperformed stocks.
One of the best things about investing in gold is its virtually zero counterparty risk. If your stock portfolio goes down, you still own your shares. You can still own your gold even if the company where you invested fails to pay its debt.
Finally, the liquidity that gold provides is unmatched. This allows you to sell your gold whenever you want, unlike many other investments. You can buy gold in small amounts because it is so liquid. This allows you to profit from short-term fluctuations on the gold market.
How Much of Your IRA Should Be Made Up Of Precious Metals
It is important to remember that precious metals can be a good investment for anyone. You don't need to be rich to make an investment in precious metals. You can actually make money without spending a lot on gold or silver investments.
You might consider purchasing physical coins, such as bullion bars and rounds. It is possible to also purchase shares in companies that make precious metals. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.
No matter what your preference, precious metals will still be of benefit to you. These metals are not stocks, but they can still provide long-term growth.
And unlike traditional investments, they tend to increase in value over time. You'll probably make more money if your investment is sold down the line than traditional investments.
What is a gold IRA account?
People who wish to invest in precious metals can use Gold Ira accounts as a tax-free investment vehicle.
You can purchase gold bullion coins in physical form at any moment. You don't have a retirement date to invest in gold.
You can keep gold in an IRA forever. Your gold assets will not be subjected tax upon your death.
Your gold will be passed on to your heirs, without you having to pay capital gains taxes. You don't need to include your gold in your final estate report, as it isn't part of the estate.
To open a IRA for gold, you must first create an individual retirement plan (IRA). After you have done this, an IRA custodian will be assigned to you. This company acts as a middleman between you and the IRS.
Your gold IRA custodian is responsible for handling all paperwork and submitting the required forms to the IRS. This includes filing annual reports.
Taxes will apply to gold that you take out of an IRA. If you take out the whole amount, you'll be subject to income taxes as well as a 10 percent penalty.
A small percentage may mean that you don't have to pay taxes. There are exceptions. You'll owe federal income tax and a 20% penalty if you take out more than 30% of your total IRA assets.
You should avoid taking out more than 50% of your total IRA assets yearly. Otherwise, you'll face steep financial consequences.
- 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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
- 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)
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement accounts
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How to Hold Physical Gold in an IRA
The best way to invest in Gold is by purchasing shares of companies that produce it. This method is not without risks. There's no guarantee these companies will survive. There is always the chance of them losing their money due to fluctuations of the gold price.
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. This option has many advantages, including the ease of access (you don’t have to deal with stock markets) and the ability of making purchases at low prices. It's also easy to see how many gold you have. You will receive a receipt detailing exactly what you paid. You have less risk of theft when investing in stocks.
However, there are disadvantages. You won't be able to benefit from investment funds or interest rates offered by banks. You can't diversify your holdings, and you are stuck with the items you have bought. Finally, the tax man might ask questions about where you've put your gold!
BullionVault.com has more information about how to buy gold in an IRA.
By: David Sencil
Title: Luetkemeyer’s Exit Sets Up Potentially Crypto-Friendly Turn in House Banking Committee
Sourced From: news.bitcoin.com/luetkemeyers-exit-sets-up-potentially-crypto-friendly-turn-in-house-banking-committee/
Published Date: Mon, 08 Jan 2024 22:30:04 +0000