Enforcement actions by the U.S. Securities and Exchange Commission (SEC) in the crypto space saw a significant surge in 2023, witnessing a 50% increase compared to the previous year, according to a recent report. The SEC has made it clear that cryptocurrency-related enforcement remains a top priority, with a total of 46 enforcement actions taken against various participants in the digital asset market.
SEC Prioritizes Crypto Enforcement
A report titled "SEC Cryptocurrency Enforcement" by Cornerstone Research reveals that the SEC's focus on enforcing laws related to digital assets reached an all-time high in 2023.
Cornerstone Research elaborated on the matter, stating, "The Securities and Exchange Commission (SEC) continues to view cryptocurrency-related enforcement as a top priority, bringing 46 enforcement actions against various digital-asset market participants in 2023." This number represents the highest figure since 2013 and signifies a 53% increase from the previous year.
The report further highlights that the first quarter of 2023 alone witnessed the SEC initiating 20 enforcement actions, which is the highest number recorded in a single quarter.
In total, the SEC brought 46 enforcement actions in 2023, including 26 litigations in U.S. federal courts and 20 administrative proceedings. The number of administrative proceedings tripled compared to the previous year, while the number of litigations increased slightly. Monetary penalties totaling $281 million were imposed as part of settlement agreements.
Out of the 46 enforcement actions, 37% were related to initial coin offerings (ICOs), a decrease from the 47% reported in 2022. Among the 17 ICO-related actions, 82% involved allegations of fraud. Notably, the SEC initiated two administrative proceedings for the first time related to non-fungible tokens (NFTs).
The report highlights the statement by Chair Gensler, who emphasized that "enforcement is a tool, not the destination." It also acknowledges the increase in SEC enforcement actions in the crypto space over the past two years.
In terms of targets, the SEC brought charges against 124 individuals or entities in cryptocurrency enforcement actions in 2023. Individuals accounted for 54% of the cases, while firms represented 46%. It is worth noting that the percentage of enforcement actions targeting individuals exclusively decreased from 50% in the previous year to 39%.
What are your thoughts on the record high enforcement actions by the SEC against individuals and firms in the crypto space? Share your opinions in the comments section below.
Frequently Asked Questions
How is gold taxed by Roth IRA?
An investment account's tax is calculated based on the current value of the account, and not on what you paid originally. So if you invest $1,000 in a mutual fund or stock and then sell it later, any gains are subject to taxes.
But if you put the money into a traditional IRA or 401(k), there's no tax when you withdraw the money. Dividends and capital gains are exempt from tax. Capital gains only apply to investments more than one years old.
These accounts are subject to different rules depending on where you live. In Maryland, for example, withdrawals must be made within 60 days of reaching the age of 59 1/2 in order to qualify. Massachusetts allows you to delay withdrawals until April 1. New York has a maximum age limit of 70 1/2. To avoid penalties, plan ahead so you can take distributions at the right time.
How much should precious metals be included in your portfolio?
Before we can answer this question, it is important to understand what precious metals actually are. Precious elements are those elements which have a high price relative to other commodities. This makes them very valuable in terms of trading and investment. Today, gold is the most commonly traded precious metal.
There are however many other types, including silver, and platinum. The price volatility of gold can be unpredictable, but it is generally stable during periods of economic turmoil. It is not affected by inflation or deflation.
All precious metals prices tend to rise with the overall market. They do not always move in the same direction. For example, when the economy is doing poorly, the price of gold typically rises while the prices of other precious metals tend to fall. Investors expect lower interest rate, making bonds less appealing investments.
However, when an economy is strong, the reverse effect occurs. Investors want safe assets such Treasury Bonds and are less inclined to demand precious metals. Because they are rare, they become more pricey and lose value.
It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. Furthermore, because the price of precious Metals fluctuates, it is best not to focus on just one type of precious Metals.
Should You Open a Precious Metal IRA?
Before opening an IRA, it is important to understand that precious metals aren't covered by insurance. You cannot recover any money you have invested. This includes all investments that are lost to theft, fire, flood, or other causes.
This type of loss can be avoided by investing in physical silver and gold coins. These coins have been around for thousands and represent a real asset that can never be lost. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.
If you decide to open an IRA account, choose a reputable company that offers competitive rates and products. It is also a smart idea to use a third-party trustee who will help you have access to your assets at all times.
Remember that you will not see any returns unless you are retired if you open an Account. Remember the future.
Should You Purchase 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.
Gold prices have been on an upward trend over recent years, but they remain relatively low compared to other commodities such as oil and silver.
This could be changing, according to some experts. Experts believe that gold prices could skyrocket in the face of another global financial crisis.
They also point out that gold is becoming popular because of its perceived value and potential return.
Here are some things to consider if you're considering investing in gold.
- Before you start saving money for retirement, think about whether you really need it. 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 account offers different levels of security and flexibility.
- Last but not least, gold doesn't provide the same level security as a savings account. If you lose your gold coins, you may never recover them.
Don't buy gold unless you have done your research. If you already have gold, make sure you protect it.
- 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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
- Yahoo Finance provides information about Barrick Gold Corporation's (GOLD) stock price, news, quote, and history.
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement account
Three Ways to Invest In Gold For Retirement
It's essential to understand how gold fits into your retirement plan. You have many options for investing in gold if there is a 401K account at your workplace. You may also want to consider investing in gold outside of your workplace. If you have an IRA (Individual Retirement Account), a custodial account could be opened at Fidelity Investments. If you don't have any precious metals yet, you might want to buy them from a reputable dealer.
These are the three rules to follow if you decide to invest in gold.
- Buy Gold With Your Cash – Do not use credit cards to purchase gold. Instead, instead, transfer cash to your accounts. This will protect your against inflation and increase your purchasing power.
- Physical Gold Coins: You should own physical gold coins, not just a certificate. It's easier to sell physical gold coins rather than certificates. Physical gold coins are also free from storage fees.
- Diversify your Portfolio – Don't put all your eggs in one basket. This is how you spread your wealth. You can invest in different assets. This helps to reduce risk and provides more flexibility when markets are volatile.
By: Kevin Helms
Title: SEC Crypto Enforcement Reached New High in 2023
Sourced From: news.bitcoin.com/sec-crypto-enforcement-reached-new-high-in-2023/
Published Date: Sun, 28 Jan 2024 04:30:53 +0000