SEC Commissioner Hester Peirce Slams Agency for Delay in Approving Spot Bitcoin ETFs
U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce has strongly criticized her agency for the delay in approving spot bitcoin exchange-traded funds (ETFs). According to Peirce, the arbitrary and capricious treatment of applications in this area will have a negative impact on the agency's reputation beyond the crypto industry. She believes that the diminished trust from the public will hinder the SEC's effectiveness in regulating the markets.
Approval of Spot Bitcoin ETFs Marks the End of a Significant Saga
Commissioner Peirce issued a statement expressing her views following the approval of 11 spot bitcoin exchange-traded funds (ETFs) by the SEC. She stated that the approval brings an end to an unnecessary, yet consequential, saga that has lasted for over a decade. Peirce expressed her belief that the approval would not have happened if it weren't for the intervention of the DC Circuit.
Failure to Acknowledge Bitcoin-Based Products Trading Under Other Regulatory Regimes
Despite the fact that bitcoin-based products have been successfully trading under other regulatory regimes for years, the SEC has been unwilling to allow spot bitcoin ETFs into the US markets until now. Commissioner Peirce emphasizes that the Commission should have taken comfort from the successful launch and smooth trading of these products, even during times of market stress and volatility. Instead, the Commission's unwillingness has forced retail investors to resort to less efficient means of gaining exposure to bitcoin in the securities markets.
Spot Bitcoin ETFs vs. Bitcoin Futures ETFs
While the SEC has been hesitant to approve spot bitcoin ETFs, it has not faced the same issues when it comes to bitcoin futures ETFs. Commissioner Peirce notes that the futures-based products are more complex and difficult to manage compared to spot products, resulting in higher costs for investors. However, despite the complexity of futures-based ETFs, the SEC has failed to provide a reasonable explanation for its reluctance to approve spot bitcoin ETFs.
Missed Opportunities and Arbitrary Treatment of Applications
Commissioner Peirce criticizes the Commission for squandering a decade of opportunities to approve spot bitcoin ETFs. She believes that if the Commission had applied the same standard used for other commodity-based ETFs, these products could have been approved years ago. However, the Commission's prejudice against the underlying asset and concerns about market manipulation led to the denial of spot bitcoin ETF applications. It was only after a court intervention that the SEC finally approved these products, albeit begrudgingly.
Continued Harms and Diminished Trust
Commissioner Peirce emphasizes that the recent approval of spot bitcoin ETFs does not undo the harms caused by the Commission's disparate treatment of these products. She warns that the arbitrary and capricious treatment of applications in this area will continue to damage the SEC's reputation, extending beyond the crypto industry. The diminished trust from the public will hinder the agency's ability to effectively regulate the markets.
What are your thoughts on SEC Commissioner Hester Peirce's stance on spot bitcoin ETFs? Share your opinion in the comments section below.
Frequently Asked Questions
How to open a Precious Metal IRA
First, decide if an Individual Retirement Account is right for you. To open the account, complete Form 8606. You will then need to complete Form 5204 in order to determine which type IRA you are eligible. This form should be completed within 60 days after opening the account. Once this is done, you can start investing. You could also opt to make a contribution directly from your paycheck by using payroll deduction.
For a Roth IRA you will need to complete Form 8903. The process for an ordinary IRA will not be affected.
To be eligible for a precious metals IRA, you will need to meet certain requirements. The IRS says you must be 18 years old and have earned income. Your annual earnings cannot exceed $110,000 ($220,000 if you are married and file jointly) for any tax year. Additionally, you must make regular contributions. These rules apply whether you're contributing through an employer or directly from your paychecks.
You can invest in precious metals IRAs to buy gold, palladium and platinum. You can only purchase bullion in physical form. This means you can't trade shares of stock and bonds.
However, there are two significant drawbacks to investing in precious metals via an IRA. First, they aren't as liquid than stocks and bonds. This makes them harder to sell when needed. Second, they don't generate dividends like stocks and bonds. Therefore, you will lose more money than you gain over time.
What are the benefits of having a gold IRA?
The best way to invest money for retirement is by putting it into an Individual Retirement Account (IRA). It will be tax-deferred up until the time you withdraw it. You can decide how much money you withdraw each year. There are many types of IRAs. Some are better suited for people who want to save for college expenses. Others are designed for investors looking for higher returns. Roth IRAs are a way for individuals to make contributions after the age of 59 1/2, and then pay taxes on any earnings upon retirement. Once they start withdrawing money, however, the earnings aren’t subject to tax again. This account is a good option if you plan to retire early.
Because you can invest money in many asset classes, a gold IRA works similarly to other IRAs. Unlike a regular IRA, you don't have to worry about paying taxes on your gains while you wait to access them. This makes gold IRA accounts excellent options for people who prefer to keep their money invested instead of spending it.
Another benefit to owning IRA gold is the ability to withdraw automatically. This eliminates the need to constantly make deposits. Direct debits could be set up to ensure you don't miss a single payment.
Gold is one of today's most safest investments. It is not tied to any country so its value tends stay steady. Even in times of economic turmoil, gold prices tend not to fluctuate. This makes it a great investment option to protect your savings from inflation.
What is a Precious Metal IRA (IRA)?
A precious metal IRA allows you to diversify your retirement savings into gold, silver, platinum, palladium, rhodium, iridium, osmium, and other rare metals. These are called “precious” metals because they're very hard to find and very valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Precious metals often refer to themselves as “bullion.” Bullion refers to the actual physical metal itself.
You can buy bullion through various channels, including online retailers, large coin dealers, and some grocery stores.
A precious metal IRA lets you invest in bullion direct, instead of purchasing stock. You'll get dividends each year.
Precious Metal IRAs don’t require paperwork nor have annual fees. Instead, you only pay a small percentage on your gains. You also have unlimited access to your funds whenever and wherever you wish.
How much are gold IRA fees?
An Individual Retirement Account (IRA) fee is $6 per month. This fee covers account maintenance fees, as well any investment costs that may be associated with your investments.
If you want to diversify, you may be required to pay extra fees. The fees you pay will vary depending on the type of IRA that you choose. Some companies offer free checking accounts, but charge monthly fees to open IRA accounts.
Many providers also charge annual management fees. These fees can range from 0% up to 1%. The average rate is.25% per year. These rates are usually waived if you use a broker such as TD Ameritrade.
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
Guidelines for Gold Roth IRA
Start saving as soon as possible to save for your retirement. Start saving as soon and as often as you're eligible (usually around 50 years old) and keep going until retirement. 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 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.
It's important to save regularly and over time. You may not be eligible for any tax benefits if your contribution is less than the maximum allowed.
By: Kevin Helms
Title: SEC Commissioner Criticizes Delay in Spot Bitcoin ETF Approval — ‘We Squandered a Decade of Opportunities’
Sourced From: news.bitcoin.com/sec-commissioner-criticizes-delay-in-spot-bitcoin-etf-approval-we-squandered-a-decade-of-opportunities/
Published Date: Sat, 13 Jan 2024 05:00:44 +0000