U.S. Senator Elizabeth Warren Disapproves SEC's Decision
U.S. Senator Elizabeth Warren has expressed her strong disapproval of the U.S. Securities and Exchange Commission (SEC) for approving spot bitcoin exchange-traded funds (ETFs). She firmly believes that the securities regulator has made a mistake both legally and in terms of policy in granting approval for the bitcoin ETFs.
Warren Voices Concerns Over SEC's Spot Bitcoin ETF Approvals
The recent approval of 11 spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) has faced immediate criticism from U.S. Senator Elizabeth Warren (D-MA). She has been a vocal skeptic of bitcoin and other cryptocurrencies, and she took to social media platform X to express her concerns:
"The SEC is wrong on the law and wrong on the policy with respect to the bitcoin ETF decision."
Warren emphasizes the need for cryptocurrency to abide by basic anti-money laundering rules if it is going to have a deeper presence in the financial system.
Response to Warren's Criticism
Warren's tweet received various responses from the community. Some argued that there are already robust laws in place to prevent crypto money laundering, and U.S. agencies such as FinCEN, SEC, and CFTC enforce anti-money laundering compliance. They also mentioned the efforts made by states like New York with their Bitlicense regulations.
Another response pointed out that the SEC's action was based on new circumstances brought up by a judge in the Grayscale Investments, LLC v. SEC case, a fact acknowledged by SEC Chair Gary Gensler.
Warren's Stance on Cryptocurrency
Warren has consistently been critical of cryptocurrency. In October of last year, she and over 100 legislators sent a bipartisan note to officials of the Biden administration, expressing concerns about Hamas evading U.S. sanctions and using crypto assets to secure millions.
To address these concerns, Warren introduced the Digital Asset Anti-Money Laundering Act, which aims to close loopholes in current law and ensure greater compliance of cryptocurrency companies with anti-money laundering and countering the financing of terrorism frameworks. However, the Chamber of Digital Commerce views Warren's bill as effectively a crypto ban and has started a petition to oppose it.
Interestingly, despite their shared skepticism towards crypto, Warren finds herself on the opposite side of the spot bitcoin ETF debate compared to JPMorgan CEO Jamie Dimon. While Dimon has claimed that bitcoin has no value and is primarily used for illicit activities, JPMorgan is serving as a lead authorized participant for Blackrock's spot bitcoin ETF.
What Are Your Thoughts?
What is your opinion on Senator Elizabeth Warren's statements regarding the approval of spot bitcoin ETFs by the SEC? Feel free to share your thoughts in the comments section below.
Frequently Asked Questions
Who is the owner of the gold in a gold IRA
The IRS considers any individual who holds gold “a form of income” that is subject to 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.
Although gold can help to prevent inflation and price volatility, it's not sensible to have it if it's not going to be used.
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.
A financial planner or accountant should be consulted to discuss your options.
How Much of Your IRA Should Be Made Up Of Precious Metals
It's important to understand that precious metals aren't only for wealthy people. It doesn't matter how rich you are to invest in precious metals. In fact, there are many ways to make money from gold and silver investments without spending much money.
You may consider buying physical coins such as bullion bars or rounds. Shares in precious metals-producing companies could be an option. Or, you might want to take advantage of an IRA rollover program offered by your retirement plan provider.
No matter what your preference, precious metals will still be of benefit to you. They offer the potential for long-term, sustainable growth even though they aren’t stocks.
Their prices rise with time, which is a different to traditional investments. So, if you decide to sell your investment down the road, you'll likely see more profit than you would with traditional investments.
What tax is gold subject in an IRA
The fair market value of gold sold is the basis for tax. You don't pay taxes when you buy gold. It is not considered income. If you decide to make a sale of it, you'll be entitled to a taxable loss if the value goes up.
You can use gold as collateral to secure loans. Lenders look for the highest return when you borrow against assets. This often means selling gold. The lender might not do this. They may keep it. They might decide to sell it. Either way, you lose potential profit.
In order to avoid losing your money, only lend against your precious metal if you plan to use it to secure other collateral. It's better to keep it alone.
Can I buy or sell gold from my self-directed IRA
Although you can buy gold using your self-directed IRA account, you will need to open an account at a brokerage like TD Ameritrade. If you have an existing retirement account, you can transfer funds to another one.
The IRS allows individuals up to $5.500 annually ($6,500 if you are married and filing jointly). This can be contributed to a traditional IRA. Individuals may contribute up to $1,000 ($2,000 if married, filing jointly) directly into a Roth IRA.
You should consider buying physical gold bullion if you decide to invest in it. Futures contracts are financial instruments based on the price of gold. They let you speculate on future price without having to own the metal. But, physical bullion is real bars of gold or silver that you can hold in one's hand.
Is buying gold a good retirement plan?
Buying gold as an investment may not seem very appealing at first glance, but when you consider how much people spend on average on gold per year worldwide, it becomes worth considering.
The best form of investing is physical bullion, which is the most widely used. You can also invest in gold in other ways. It's best to thoroughly research all options before you make a decision.
If you don't want to keep your wealth safe, buying shares in companies that extract gold and mining equipment could be a better choice. If you are looking for cash flow from your investment, buying gold stocks will work well.
ETFs allow you to invest in exchange-traded funds. These funds give you exposure, but not actual gold, by investing in gold-related securities. These ETFs usually include stocks of precious metals refiners or gold miners.
Statistics
- 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)
- 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)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Legal – WSJ
irs.gov
bbb.org
cftc.gov
How To
How to keep physical gold in an IRA
The best way of investing in gold is to purchase shares from companies that produce gold. This method is not without risks. There's no guarantee these companies will survive. Even if the company survives, they still face the risk of losing their investment due to fluctuations in gold's price.
Alternative options include buying physical gold. You'll need to open a bank account, buy gold online from a trusted seller, or open an online bullion trading account. The advantages of this option include the ease of access (you don't need to deal with stock exchanges) and the ability to make purchases when prices are low. It's easier to track how much gold is in your possession. So you can see exactly what you have paid and if you missed any taxes, you will get a receipt. You have less risk of theft when investing in stocks.
There are however some disadvantages. For example, you won't benefit from banks' interest rates or investment funds. You can't diversify your holdings, and you are stuck with the items you have bought. Finally, the taxman might want to know where your gold has been placed!
BullionVault.com is the best website to learn about gold purchases in an IRA.
—————————————————————————————————————————————————————————————-
By: Kevin Helms
Title: Senator Elizabeth Warren Criticizes SEC's Approval of Spot Bitcoin ETFs
Sourced From: news.bitcoin.com/senator-elizabeth-warren-says-sec-is-wrong-for-approving-spot-bitcoin-etfs/
Published Date: Sat, 13 Jan 2024 00:30:55 +0000
