SEC Announces Increased Enforcement Actions for Fiscal Year 2023
The U.S. Securities and Exchange Commission (SEC) announced its enforcement results for the fiscal year 2023 on Tuesday. The securities regulator revealed that it filed 784 total enforcement actions, a 3% increase over fiscal year 2022. SEC Chair Gary Gensler commented:
"The investing public benefits from the Division of Enforcement's work as a cop on the beat."
Impactful Year for Crypto Asset Securities Enforcement
The SEC described fiscal year 2023 as another highly productive and impactful year for its enforcement efforts relating to crypto asset securities. The regulator emphasized its commitment to protecting the investing public and maintaining the integrity of the market.
Within the cryptocurrency space, the SEC took various enforcement measures, targeting billion-dollar crypto fraud schemes, unregistered crypto asset offerings, platforms, intermediaries, and illegal celebrity endorsements. The regulator highlighted several notable cases involving Terraform Labs and its co-founder Do Kwon, Richard Heart and his controlled entities, former FTX CEO Samuel Bankman-Fried (SBF), Genesis and Gemini, Celsius, Kraken, Nexo, Beaxy, Bittrex, Binance, and Coinbase.
Additionally, the SEC filed its first actions against non-fungible token (NFT) issuers in fiscal year 2023, charging Impact Theory LLC and Stoner Cats 2 LLC for violations related to their NFT offerings.
Action Against Influencers for Promoting Crypto Asset Securities
The SEC also took action against influencers who allegedly promoted crypto asset securities without disclosing their compensation for doing so. The enforcement actions targeted individuals such as Paul Pierce, Kim Kardashian, Lindsay Lohan, Jake Paul, Michele Mason (Kendra Lust), Miles Parks McCollum (Lil Yachty), Shaffer Smith (Ne-Yo), Aliaune Thiam (Akon), DeAndre Cortez Way (Soulja Boy), and Austin Mahone.
CFTC Sets Record for Crypto Enforcement Actions
Last week, the Commodity Futures Trading Commission (CFTC) announced that it filed a record number of crypto enforcement actions in fiscal year 2023. The CFTC brought 47 actions involving conduct related to digital asset commodities, representing more than 49% of all actions filed during that period. This highlights the increased regulatory scrutiny on the crypto industry.
What are your thoughts on the SEC's enforcement actions against the crypto industry? Let us know in the comments section below.
Frequently Asked Questions
What are the fees associated with an IRA for gold?
A monthly fee of $6 for an Individual Retirement Account is charged. This fee includes account maintenance fees as well as any investment costs related to your selected investments.
If you want to diversify, you may be required to pay extra fees. These fees can vary depending on which type of IRA account you choose. Some companies offer free checking accounts, but charge monthly fees to open IRA accounts.
Most providers also charge an annual management fee. These fees range from 0% to 1%. The average rate is.25% annually. However, these rates are typically waived if you use a broker like TD Ameritrade.
What are the pros & cons 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 way to save money and not have to pay taxes on the interest you earn. However, there are also disadvantages to this type of investment.
You may lose all your accumulated savings if you take too much out of your IRA. Also, the IRS may not allow you to make withdrawals from your IRA until you're 59 1/2 years old. If you do decide to withdraw funds from your IRA, you'll likely need to pay a penalty fee.
Another disadvantage is that you must pay fees to manage your IRA. Many banks charge between 0.5%-2.0% per year. Others charge management fees that range from $10 to $50 per month.
Insurance will be required if you would like to keep your cash out of banks. In order to make a claim, most insurers will require that you have a minimum amount in gold. Some insurers may require you to have insurance that covers losses up $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 amount of gold that you are allowed to own. Others allow you to pick your weight.
You'll also need to decide whether to buy physical gold or futures contracts. 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.
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 may consider adding additional coverage if you live in an area at high risk.
In addition to insurance, you'll need to consider the cost of storing your gold. Insurance won't cover storage costs. Banks charge between $25 and $40 per month for safekeeping.
Before you can open a gold IRA you need to contact a qualified Custodian. A custodian keeps track of your investments and ensures that you comply with federal regulations. Custodians can't sell assets. Instead, they must hold them as long as you request.
Once you have chosen the right type of IRA to suit your needs, it is time to fill out paperwork defining your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. It is also important to specify how much money you will 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.
You should consult a financial planner before opening a Gold IRA. A financial planner can help you decide the type of IRA that is right for your needs. You can also reduce your insurance costs by working with them to find lower-cost alternatives.
Can I buy or sell gold from my self-directed IRA
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. Transfer funds from an existing retirement account are also possible.
The IRS allows individuals contributing up to $5.500 each ($6,500 if married, filing jointly) into a traditional IRA. Individuals can contribute as much as $1,000 per year ($2,000 if married filing jointly) to a Roth IRA.
You should consider buying physical gold bullion if you decide to invest in it. Futures contracts can be described as financial instruments that are determined by the gold price. They let you speculate on future price without having to own the metal. However, physical bullion is real gold or silver bars you can hold in your hands.
How to Open a Precious Metal IRA?
It is important to decide if you would like an Individual Retirement Account (IRA). If you do, you must open the account by completing 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 can also choose to pay your salary directly by making a payroll deduction.
Complete Form 8903 if your Roth IRA option is chosen. Otherwise, the process will be identical to an ordinary IRA.
You'll need to meet specific requirements to qualify for a precious metals IRA. 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 regardless of whether you are contributing directly to your paychecks or through your employer.
You can invest in precious metals IRAs to buy gold, palladium and platinum. However, you can't purchase physical bullion. This means you won't be allowed to trade shares of stock or bonds.
There are two major drawbacks to investing via an IRA in precious metals. First, they aren't as liquid than stocks and bonds. They are therefore more difficult to sell when necessary. Second, they don’t produce dividends like stocks or bonds. So, you'll lose money over time rather than gain it.
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement funds
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Want to Keep Gold in Your IRA at Home? It's not legal – WSJ
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
Gold Roth IRA guidelines
Start saving as soon as possible to save for your retirement. As soon as you become eligible, which is usually around age 50, start saving and keep it up throughout your career. It's vital to contribute enough money each year to ensure adequate growth on an ongoing basis.
Also, you want to take advantage tax-free options such as a traditional 401k, SEP IRA or SIMPLE IRA. These savings vehicles enable you to make contributions while not paying any taxes on the 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 is important to save consistently 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 Reports Productive Year for Enforcement Actions on Crypto Assets
Sourced From: news.bitcoin.com/sec-announces-highly-productive-year-for-crypto-enforcement-actions/
Published Date: Thu, 16 Nov 2023 00:30:54 +0000