Introduction
A nonprofit organization, Better Markets, has criticized the U.S. Securities and Exchange Commission's (SEC) approval of spot bitcoin exchange-traded funds (ETFs), claiming that it allows for the "mass marketing of a known worthless, volatile, and fraud-filled financial product to Main Street Americans." The organization argues that the approval may be seen as a government endorsement of cryptocurrencies by bitcoin proponents.
Concerns over Bitcoin Trading
Better Markets expresses concern over the SEC's decision to approve the spot bitcoin ETFs, stating that it enables the promotion of a financial product that lacks value, stability, and integrity. The organization believes that this approval puts Main Street Americans at risk of investing in a volatile and fraudulent asset.
The Law and Grayscale's Court Ruling
In its press statement, Better Markets insists that the law does not support the SEC's approval of ETF applications. The organization also disputes the notion that a U.S. court ruling in favor of Grayscale, a crypto asset manager, forced the SEC's hand. The court ruling stated that the SEC's rejection of Grayscale's spot Bitcoin ETF was "arbitrary and capricious," but Better Markets argues that it does not mean the SEC had to approve the ETFs.
Insufficient Explanation for Rejection
Better Markets criticizes the SEC for failing to sufficiently explain its prior rejection of ETF applications. The organization emphasizes that the SEC should have rejected the applications and provided a detailed explanation, including evidence of wash trading. It claims that as much as 77.5% of the total trading volume on unregulated exchanges and up to 95% of Bitcoin trading could be attributed to wash trading.
Government Endorsement of Cryptocurrencies
According to Better Markets, the approval of Bitcoin ETFs may be seen as a government endorsement of cryptocurrencies by bitcoin proponents. The organization argues that cryptocurrencies, including Bitcoin, are still considered worthless financial products that primarily attract speculators, gamblers, and criminals.
Ineffectiveness of Regulatory Bodies
Better Markets highlights the lack of effective regulation in the crypto industry. It criticizes Rostin Behnam, the chairman of the Commodities Futures Trading Commission (CFTC), for being biased in favor of cryptocurrencies and failing to effectively oversee the industry.
Conclusion
The approval of spot bitcoin ETFs by the SEC has sparked controversy, with Better Markets criticizing the decision for enabling the mass marketing of a worthless and volatile asset to Main Street Americans. The organization questions the lawfulness of the approval and argues that cryptocurrencies, including Bitcoin, are still considered risky financial products. The debate over the SEC's decision and the regulation of the crypto industry continues.
Your Thoughts
What are your thoughts on Better Markets' criticism of the SEC's approval of ETFs? Feel free to share your opinion in the comments section below.
Frequently Asked Questions
How much should your IRA include precious metals
When investing in precious metals, the most important thing to know is that they aren't just for wealthy people. You don't need to be rich to make an investment in precious metals. There are many methods to make money off of silver and gold investments.
You could also consider buying physical coins like bullion bars, rounds or bullion bars. It is possible to also purchase shares in companies that make precious metals. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. 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. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.
What does gold do as an investment?
Supply and demand determine the gold price. It is also affected negatively by interest rates.
Due to the limited supply of gold, prices for gold are highly volatile. Additionally, physical gold can be volatile because it must be stored somewhere.
What is the best precious metal to invest in?
The answer to this question depends on how much risk you are willing to take and what type of return you want. Although gold has been considered a safe investment, it is not always the most lucrative. Gold may not be right for you if you want quick profits. You should invest in silver if you have the patience and time.
If you don’t desire to become rich quickly, gold may be your best option. Silver may be a better option for investors who want long-term steady returns.
What is the tax on gold in Roth IRAs?
A tax assessment for an investment account will be based on the current market value, and not what you paid initially. Any gains made by you after investing $1,000 in a stock or mutual fund are subject to tax.
The money can be withdrawn tax-free if it's deposited in a traditional IRA (or 401(k)). Only earnings from capital gains and dividends are subject to tax. These taxes do not apply to investments that have been held for more than one year.
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, you should plan ahead and take distributions as soon as possible.
How much should you have of gold in your portfolio
The amount that you want to invest will dictate how much money it takes. You can start small by investing $5k-10k. As you grow, it is possible to rent desks or office space. You don't need to worry about paying rent every month. You only pay one month.
Consider what type of business your company will be running. 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.
If you are doing freelance work, you probably won't have a monthly salary like I do because the project pays freelancers. This means that you may only be paid once every six months.
Decide what kind of income do you want before you calculate how much gold is needed.
I suggest starting with $1k-2k gold and building from there.
Statistics
- 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)
- (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)
External Links
irs.gov
investopedia.com
- Do You Need a Gold IRA to Get Retirement?
- What are the Options Types, Spreads and Example. Risk Metrics
bbb.org
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement funds
How To
Tips for Investing in Gold
One of the most sought-after investment strategies is investing in gold. There are many benefits to investing in gold. There are many ways you can invest in gold. There are many ways to invest in gold. Some prefer buying physical gold coins while others prefer gold ETFs (Exchange Traded Funds).
You should consider some things before you decide to purchase any type of gold.
- First, check to see if your country permits you to possess gold. If the answer is yes, you can go ahead. Otherwise, you can look into buying gold from abroad.
- Secondly, you should know what kind of gold coin you want. You have the option of choosing yellow, white, or rose gold.
- Third, consider the cost of gold. Start small and build up. One thing that you should never forget when purchasing gold is to diversify your portfolio. Diversify your investments in stocks, bonds or real estate.
- Don't forget to keep in mind that gold prices often change. Be aware of the current trends.
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By: Terence Zimwara
Title: Bitcoin ETFs Enable Main Street Americans to Invest in Worthless and Volatile Asset, Says Better Markets
Sourced From: news.bitcoin.com/bitcoin-etfs-enable-the-mass-marketing-of-a-worthless-asset-to-main-street-americans-says-better-markets/
Published Date: Fri, 12 Jan 2024 12:30:29 +0000
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