Introduction
A U.S. lawmaker, Congressman Tom Emmer, has criticized the Securities and Exchange Commission (SEC) for its deliberate policy preference to provide less clarity to the crypto market. Emmer accused the SEC of not adhering to the law and suggested that the commission's approach is the reason for its repeated losses in court. The criticism was directed at SEC Chair Gary Gensler, questioning his personal agenda in regulating the crypto industry.
Congressman Emmer's Criticism
During a hearing of the House Subcommittee on Digital Assets, Financial Technology and Inclusion, Congressman Tom Emmer expressed his dissatisfaction with the SEC's regulation of the crypto industry. Emmer posted on social media platform X, stating that the SEC intentionally provides less clarity to the marketplace instead of more, which he considers a disservice to the capital markets.
Hinman's Speech and SEC's Clarity
Congressman Emmer referred to a speech titled "Digital Asset Transactions: When Howey Met Gary" given by William Hinman, the former director of the Division of Corporation Finance at the SEC. In this speech, Hinman discussed the concept of tokens morphing from securities to non-securities and stated that ether is not a security. Emmer quoted Valerie A. Szczepanik, director of the SEC's Strategic Hub for Innovation and Financial Technology, who suggested that providing less detail in the speech was better to generate discussions. Emmer questioned whether the current SEC chair shares the view of intentionally providing less clarity.
Finhub's Guidance and Rulemaking
Congressman Emmer asked Szczepanik if Finhub has issued any guidance under Chair Gensler to clarify how security laws apply to crypto. When the Finhub director failed to provide an answer, Emmer concluded that it seems like the SEC is engaged in rulemaking through enforcement actions. Emmer also inquired about Szczepanik's view on ether, but she declined to answer, citing an inability to comment on a specific asset.
SEC's Allegiance to the Law
Congressman Emmer accused the SEC of not adhering to the law and suggested that the commission's repeated losses in court are a result of this. He questioned whether SEC Chair Gary Gensler instructs his team to adopt positions that further his own personal goals rather than following the law. Szczepanik refrained from commenting on any matters related to pending litigation.
Emmer's Previous Criticism and Actions
Congressman Emmer has consistently criticized the SEC and Chair Gensler for their enforcement-centric approach to regulating the crypto industry. In June, Emmer supported the SEC Stabilization Act, which aims to remove Gensler as the chair of the securities regulator. Emmer has also attached an amendment to the Financial Services and General Government Appropriations Act of 2024 that limits the SEC's authority to carry out enforcement actions against the crypto industry. Furthermore, he has urged Congress to allocate resources to foster more crypto activity and opportunities within the United States for national security purposes.
Conclusion
Congressman Tom Emmer's criticism of the SEC's lack of clarity in the crypto market highlights the ongoing debate surrounding regulatory oversight. Emmer's concerns about the SEC's adherence to the law and Chair Gensler's personal agenda add to the discussion on how best to regulate the crypto industry. The outcome of this debate will have significant implications for the future of digital assets and financial services.
Frequently Asked Questions
What precious metal is best for investing?
This depends on what risk you are willing take and what kind of return you desire. Gold is a traditional haven investment. However, it is not always the most profitable. You might not want to invest in gold if you're looking for quick returns. If you have the patience to wait, then you might consider investing in silver.
If you don't care about getting rich quickly, gold is probably the way to go. However, silver might be a better option if you're looking for an investment that provides steady returns over long periods.
How much of your IRA should include precious metals?
The most important thing you should know when investing in precious metals is that they are not just for wealthy people. You don't have to be rich to invest in them. There are many ways that you can make money with gold and silver investments, even if you don't have much money.
You might also be interested in buying physical coins, such bullion rounds or bars. It is possible to also purchase shares in companies that make precious metals. You may also be interested in an IRA transfer program offered by your retirement provider.
You'll still get the benefit of precious metals no matter which country you live in. Although they aren’t stocks, they offer the possibility for long-term gains.
And unlike traditional investments, they tend to increase in value over time. If you decide to make a sale of your investment in the future, you will likely realize more profit than with traditional investments.
Is buying gold a good way to save money for retirement?
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.
Physical bullion bar is the best way to invest in precious metals. But there are many other options for investing in gold. It is best to research all options and make informed decisions based on your goals.
If you're not looking to secure your wealth, it may be worth considering purchasing shares in mining equipment or companies that extract gold. If you need cash flow from an investment, purchasing gold stocks is a good choice.
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 typically include stocks from gold miners, precious metallics refiners, commodity trading companies, and other commodities.
Should You Purchase Gold?
Gold was a safe investment option for those who were in financial turmoil. Today, many people are looking to precious metals like gold and avoiding traditional investments like bonds and stocks.
The trend for gold prices has been upward in recent years but they still remain low relative to other commodities like silver and oil.
Experts think this could change quickly. They believe gold prices could increase dramatically if there is another global financial crises.
They also pointed out that gold is gaining popularity due to its perceived value, and potential return.
Here are some things to consider if you're considering investing in gold.
- Consider whether you will actually need the money that you are saving for retirement. It is possible to save for retirement while still investing your gold savings. However, when you retire at age 65, gold can provide additional protection.
- Second, be sure to understand your obligations before you purchase gold. Each offers varying levels of flexibility and security.
- Finally, remember that gold doesn't offer the same level of safety as a bank account. It is possible to lose your gold coins.
Do your research before you buy gold. If you already have gold, make sure you protect it.
What precious metals could you invest in to retire?
Silver and gold are two of the most valuable precious metals. They are both simple to purchase and sell, and they have been around for a long time. You should add them to your portfolio if you are looking to diversify.
Gold: The oldest form of currency known to man is gold. It is stable and very secure. It is a good way for wealth preservation during uncertain times.
Silver: Silver has always been popular among investors. It's a great option for those who want stability. Silver, unlike gold, tends not to go down but up.
Platinum: A new form of precious metal, platinum is growing in popularity. Like gold and silver, it's very durable and resistant to corrosion. It is however more expensive than its counterparts.
Rhodium. Rhodium is used as a catalyst. It is also used to make jewelry. It is relatively affordable when compared to other types.
Palladium: Palladium has a similarity to platinum but is more rare. It's also less expensive. For these reasons, it's become a favorite among investors looking to add precious metals to their portfolios.
What are the advantages of a IRA with a gold component?
There are many benefits to a gold IRA. It can be used to diversify portfolios and is an investment vehicle. You decide how much money is put in each account and when it is withdrawn.
Another option is to rollover funds from another retirement account into a IRA with gold. This is a great way to make a smooth transition if you want to retire earlier.
The best thing about investing in gold IRAs is that you don’t need any special skills. They are offered by most banks and brokerage companies. You don't have to worry about penalties or fees when withdrawing money.
However, there are still some drawbacks. Gold has always been volatile. Understanding why you want to invest in gold is essential. Are you looking for safety or growth? Are you looking for growth or insurance? Only after you have this information will you make an informed decision.
If you plan to keep your gold IRA indefinitely, you'll probably want to consider buying more than one ounce of gold. One ounce won't be enough to meet all your needs. You may need several ounces, depending on what you intend to do with your precious gold.
If you're planning to sell off your gold, you don't necessarily need a large amount. Even a single ounce can suffice. But, those funds will not allow you to buy anything.
Statistics
- 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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
External Links
investopedia.com
bbb.org
irs.gov
cftc.gov
How To
The best way to buy gold (or silver) online
Understanding how gold works is essential before you buy it. Precious metals like gold are similar to platinum. It's very rare, and it is often used as money for its durability and resistance. It's difficult to use, so most people prefer purchasing jewelry made from it rather than actual bars.
Two types of gold coins are available today: the legal tender type and the bullion type. Legal tender coins can be used for circulation within a country. These coins usually come in denominations such $1, $5 and $10.
Bullion coins are only minted to be used for investment purposes. Their value increases over time because of inflation.
They cannot be used in currency exchanges. For example, a person who buys $100 worth or gold gets 100 grams. This gold has a $100 price. Each dollar spent earns the buyer 1 gram gold.
Next, you need to find out where to buy gold. There are many options for buying gold directly from dealers. First, you can visit your local coin store. You can also go to a reputable website such as eBay. You can also purchase gold through private online sellers.
Individuals who sell gold at wholesale and retail prices are called private sellers. You pay a commission fee between 10% and 15% for each transaction when you sell gold through private sellers. This means that you will get less back from a private seller than if you sell it through a coin shop or on eBay. This is a great option for gold investing because you have more control over the item’s price.
Another way to buy gold is by investing in physical gold. While physical gold is easier than paper certificates to store, you still need to make sure it is safe. You need to make sure that your physical gold is safe by storing it in an impenetrable container like a vault or safety depositbox.
If you are looking to purchase gold on your own, you have two options: a bank or an pawnshop. A bank can provide you with a loan to cover the amount you wish to invest in gold. These are small businesses that let customers borrow money against the items they bring to them. Banks often charge higher interest rates then pawnshops.
Finally, another way to buy gold is to simply ask someone else to do it! Selling gold is also easy. Contact a company such as GoldMoney.com, and you can set up a simple account and start receiving payments immediately.
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By: Kevin Helms
Title: Lawmaker Slams SEC for Lack of Clarity in Crypto Market
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
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