Congressman Tom Emmer Accuses SEC of Ignoring the Law
Congressman Tom Emmer, a member of the U.S. House Subcommittee on Digital Assets, Financial Technology and Inclusion, has criticized the Securities and Exchange Commission (SEC) for its deliberate policy to provide less clarity to the crypto market. Emmer accused the SEC of not adhering to the law and stated that this is the reason why the SEC keeps losing in court. He also questioned SEC Chair Gary Gensler's personal agenda.
Emmer's Concerns Raised at a Congressional Hearing
Congressman Emmer voiced his concerns during a hearing of the House Subcommittee on Digital Assets, Financial Technology and Inclusion. He expressed his disappointment with the SEC's approach to regulating the crypto industry and its lack of clarity in providing guidance. Emmer believes that the SEC's deliberate policy of providing less clarity is a disservice to the capital markets.
Crypto Industry Witnesses Testify at the Hearing
During the congressional hearing, Valerie A. Szczepanik, director of the SEC's Strategic Hub for Innovation and Financial Technology (Finhub), testified as one of the witnesses. Emmer referred to a speech given by William Hinman, the former director of the Division of Corporation Finance at the SEC, in which he discussed the concept of tokens morphing from securities to non-securities and stated that ether is not a security.
Less Clarity as a New Concept
Emmer highlighted Szczepanik's review of Hinman's speech and quoted her as saying that providing less detail in a speech is better because the concept of a token morphing from a security to a non-security was new and would generate a lot of discussion. Emmer questioned whether the current SEC chair shares the view of providing less clarity to the market.
SEC's Lack of Guidance under Chair Gensler
Congressman Emmer further inquired whether Finhub has issued any guidance since Chair Gensler took office to clarify how security laws apply to crypto. When Szczepanik failed to provide an answer, Emmer concluded that it seems the SEC is engaging in rulemaking through enforcement actions rather than providing clear guidance.
SEC's Allegiance to the Law and Pending Litigation
Emmer challenged the SEC's adherence to the law and asked Szczepanik whether the chairman of the SEC instructs her to adopt positions that further a specific personal goal instead of allegiance to the law. Szczepanik declined to comment, citing pending litigation as the reason.
Emmer's Previous Criticisms and Proposed Legislation
Congressman Emmer has been a vocal critic of the SEC's enforcement-centric approach to regulating the crypto industry. In June, he supported the SEC Stabilization Act, which aims to remove Gensler as the chair of the securities regulator. Emmer also attached an amendment to the Financial Services and General Government Appropriations Act of 2024, limiting the SEC's authority to carry out enforcement actions against the crypto industry. Additionally, he urged Congress to allocate resources to bring more crypto activity onshore for the benefit of U.S. national security.
What are your thoughts on Congressman Tom Emmer's criticism of the SEC? Do you believe SEC Chair Gary Gensler has a personal agenda in regulating the crypto industry? Share your opinions in the comments below.
Frequently Asked Questions
Can the government take your gold?
The government cannot take your gold because you own it. You worked hard to earn it. It belongs entirely to you. There may be exceptions to this rule. You can lose your gold if you have been convicted for fraud against the federal governments. If you owe taxes, your precious metals could be taken away. However, even if taxes are not paid, gold is still your property.
What proportion of your portfolio should you have in precious metals
This question can only be answered if we first know what precious metals are. Precious Metals are elements that have a very high relative value to other commodities. This makes them extremely valuable for trading and investing. Gold is currently the most widely traded precious metal.
There are however many other types, including silver, and platinum. While gold's price fluctuates during economic turmoil, it tends to remain relatively stable. It also remains relatively unaffected by inflation and deflation.
In general, prices for precious metals tend increase with the overall marketplace. However, the prices of precious metals do not always move in sync with one another. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. Investors expect lower interest rate, making bonds less appealing investments.
In contrast, when the economy is strong, the opposite effect occurs. Investors choose safe assets such Treasury Bonds over precious metals. Because they are rare, they become more pricey and lose value.
You must therefore diversify your investments in precious metals to reap the maximum profits. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
How much gold should you have in your portfolio?
The amount that you want to invest will dictate how much money it takes. Start small with $5k-10k. Then as you grow, you could move into an office space and rent out desks, etc. You don't need to worry about paying rent every month. Rent is only paid per month.
It's also important to determine what type business you'll run. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. Consider how much you expect to make from each client, if you decide to do this kinda thing.
You won't get a monthly paycheck if you work freelance. This is because freelancers are paid. So you might only get paid once every 6 months or so.
Before you can determine how much gold you'll need, you must decide what type of income you want.
I would recommend that you start with $1k-2k worth of gold and then increase your wealth.
How is gold taxed in Roth IRA?
An investment account's tax is calculated based on the current value of the account, and not on what you paid originally. All gains, even if you have invested $1,000 in a mutual funds stock, are subject to tax.
However, if the money is deposited into a traditional IRA/401(k), the tax on the withdrawal of the money is not applicable. You pay taxes only on earnings from dividends and capital gains — which apply only to investments held longer than one year.
The rules governing these accounts vary by state. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. Massachusetts allows you to wait until April 1. New York is open until 70 1/2. To avoid penalty fees, it is important to plan and take distributions in time to pay all your retirement savings.
Can I keep a Gold ETF in a Roth IRA
Although a 401k plan might not provide this option, you should still consider other options like an Individual Retirement Account (IRA).
A traditional IRA allows for contributions from both employer and employee. Another option is to invest in publicly traded corporations with an Employee Stockownership Plan (ESOP).
An ESOP can provide tax advantages, as employees are allowed to share in company stock and the profits generated by the business. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.
A Individual Retirement Annuity (IRA), is also available. You can make regular payments to your IRA throughout your life, and you will also receive income when you retire. Contributions to IRAs don't have to be taxable
What does gold do as an investment?
The supply and the demand for gold determine how much gold is worth. It is also affected by interest rates.
Due to limited supplies, gold prices are subject to volatility. There is also a risk in owning gold, as you must store it somewhere.
What are some of the benefits of a gold IRA
An Individual Retirement Account (IRA) is the best way to put money towards retirement. It's not subject to tax until you withdraw it. You have total control over how much each year you take out. There are many types to choose from when it comes to IRAs. Some are better suited for people who want to save for college expenses. Others are made for investors seeking higher returns. Roth IRAs permit individuals to contribute after the age 59 1/2. Any earnings earned at retirement are subject to tax. Once they start withdrawing money, however, the earnings aren’t subject to tax again. This type of account might be a good choice if your goal is to retire early.
A gold IRA is similar to other IRAs because it allows you to invest money in various asset classes. Unlike a regular IRA you don't need to worry about taxes while you wait for your gains to be available. This makes gold IRA accounts excellent options for people who prefer to keep their money invested instead of spending it.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. You won't have the hassle of making deposits each month. Direct debits could be set up to ensure you don't miss a single payment.
Finally, gold is one the most secure investment options available. It is not tied to any country so its value tends stay steady. Even in economic turmoil, gold prices tends to remain relatively stable. It is therefore a great choice for protecting your savings against inflation.
Statistics
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
External Links
bbb.org
cftc.gov
irs.gov
investopedia.com
How To
Gold Roth IRA guidelines
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 is essential to save enough money each year in order to maintain a steady growth rate.
You can also take advantage of tax-free savings opportunities like a traditional 401k (k), SEP IRA (or SIMPLE IRA). These savings vehicles let you make contributions and not pay taxes until the earnings are withdrawn. This makes them great options for people who don't have access to employer matching funds.
Save regularly and continue to save over time. You'll miss out on any potential tax benefits if you're not contributing the maximum amount allowed.
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By: Kevin Helms
Title: The SEC's Deliberate Lack of Clarity in the Crypto Market Criticized by U.S. Lawmaker
Sourced From: news.bitcoin.com/us-lawmaker-blasts-sec-for-deliberately-obfuscating-crypto-regulations-questions-chair-genslers-personal-agenda/
Published Date: Thu, 07 Dec 2023 04:30:26 +0000
