Better Markets, a financial watchdog group, has called on the U.S. Securities and Exchange Commission (SEC) to reject spot bitcoin exchange-traded funds (ETFs), warning that these investment products will cause significant harm to investors. The organization features a testimonial from U.S. Senator Elizabeth Warren on its website, emphasizing the need for regulatory caution. Better Markets' president, who reportedly has a close relationship with SEC Chairman Gary Gensler, has urged the securities regulator not to facilitate the potential financial damage that may ensue.
Better Markets Files Supplemental Comment Urging SEC to Reject Spot Bitcoin ETFs
Last Friday, Better Markets submitted a supplemental comment letter to the U.S. Securities and Exchange Commission, outlining the reasons why the regulatory body should reject applications for spot bitcoin exchange-traded products (ETPs), including bitcoin ETFs. Better Markets is a non-profit, non-partisan organization based in Washington, D.C., dedicated to promoting the public interest in financial reform and the economy. The letter addressed various spot bitcoin ETF proposals, including those from Blackrock, Vaneck, Ark Invest, Invesco, and Wisdomtree.
In its letter, Better Markets emphasized the importance of the SEC adhering to the law and refusing to approve spot bitcoin ETPs, which the organization believes will have severe negative consequences for investors. Dennis Kelleher, the cofounder, president, and CEO of Better Markets, expressed his concerns, stating that approving these products would expose millions of American investors and retirees to the fraudulent activities and market manipulation commonly associated with the bitcoin market. He warned that allowing the crypto industry to package and distribute a financially worthless gambling instrument with a veneer of legitimacy would lead to significant financial harm. He stressed that denying the proposed rule changes is necessary to fulfill the SEC's mandate.
Connection Between Better Markets, Senator Elizabeth Warren, and SEC Chairman Gary Gensler
Several individuals on social media platforms quickly pointed out the connections between Better Markets, U.S. Senator Elizabeth Warren, and SEC Chairman Gary Gensler, raising concerns about potential bias. Warren, known for her skepticism towards cryptocurrencies, is prominently featured on the Better Markets website, praising the organization's efforts in advocating for financial reform. Meanwhile, a Fox Business journalist highlighted the close association between SEC Chairman Gary Gensler and Better Markets CEO Dennis Kelleher, noting their shared involvement in President Biden's transition team. Kelleher's negative stance on crypto has been well-documented, with him previously stating that cryptocurrencies serve no legitimate purpose and are a fraud.
While some members of the crypto community find Better Markets' arguments unconvincing, others express concerns that Gensler's views may influence the SEC's decision on spot bitcoin ETF applications.
What are your thoughts on Better Markets' efforts to persuade the SEC to reject spot bitcoin ETF applications? Share your opinions in the comments below.
Frequently Asked Questions
What is the benefit of a gold IRA?
There are many benefits to a gold IRA. It is an investment vehicle that can diversify your portfolio. You decide how much money you want to put into each account, and when you want it to be withdrawn.
Another option is to rollover funds from another retirement account into a IRA with gold. This allows you to easily transition if your retirement is early.
The best part is that you don't need special skills to invest in gold IRAs. They are offered by most banks and brokerage companies. You don't have to worry about penalties or fees when withdrawing money.
But there are downsides. Gold has always been volatile. It is important to understand why you are investing in gold. Are you seeking safety or growth? Do you want to use it as an insurance strategy or for long-term growth? 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 doesn't suffice to cover all your needs. You could need several ounces depending on what you plan to do with your gold.
A small amount is sufficient if you plan to sell your gold. Even one ounce is enough. But, those funds will not allow you to buy anything.
How much is gold taxed under a Roth IRA
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)). Dividends and capital gains are exempt from tax. Capital gains only apply to investments more than one years old.
The rules that govern these accounts differ from one state to the next. For example, in Maryland, you must take withdrawals within 60 days after reaching age 59 1/2 . Massachusetts allows you to wait until April 1. New York is open until 70 1/2. To avoid penalties, you should plan ahead and take distributions as soon as possible.
What is a Precious Metal IRA (IRA)?
You can diversify your retirement savings by investing in precious metal IRAs. This allows you to invest in gold, silver and platinum as well as iridium, osmium and other rare metals. These rare metals are often called “precious” as they are very difficult to find and highly valuable. They make excellent investments for your money and help you protect your future from inflation and economic instability.
Bullion is often used to refer to precious metals. Bullion refers actually to the metal.
Bullion can be purchased via a variety of channels including online sellers, large coin dealers, and grocery stores.
An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. This means you'll receive dividends every year.
Precious Metal IRAs don’t require paperwork nor have annual fees. Instead, you pay only a small percentage tax on your gains. Additionally, you have access to your funds at no cost whenever you need them.
What are the pros & con's of a golden IRA?
An Individual Retirement Account is a more beneficial option than regular savings accounts. You don't pay taxes on any interest earned. An IRA is a good choice for those who want a way to save some money but don’t want the tax. This type of investment has its downsides.
For example, if you withdraw too much from your IRA once, you could lose all your accumulated funds. Also, the IRS may not allow you to make withdrawals from your IRA until you're 59 1/2 years old. If you do withdraw funds, you'll need to pay a penalty.
The downside is that managing your IRA requires fees. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management fees ranging from $10 to $50.
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. It is possible that you will be required to purchase insurance that covers losses of up to $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 number of ounces of gold that you can own. Some providers allow you to choose your weight.
It's also important to decide whether or not to buy gold futures contracts. Physical gold is more costly than gold futures. Futures contracts provide flexibility for purchasing gold. Futures contracts allow you to create a contract with a specified expiration date.
You will also have to decide which type of insurance coverage is best for you. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. It does include coverage for damage due to natural disasters. You might consider purchasing additional coverage if your area is 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.
If you decide to open a gold IRA, you must first contact a qualified custodian. A custodian maintains track of all your investments and ensures you are in compliance with federal regulations. Custodians cannot sell your assets. Instead, they must keep your assets for as long you request.
After you've determined which type of IRA is best for you, fill out the paperwork indicating your goals. Information about your investments such as stocks and bonds, mutual fund, or real property should be included in your plan. It is also important to specify how much money you will invest each month.
After filling in the forms, please send them to the provider. Once the company has received your application, they will review it and send you a confirmation email.
If you are thinking of opening a gold IRA for retirement, a financial professional is a great idea. Financial planners are experts at investing and can help you determine which type of IRA is best for you. They can also help reduce your costs by suggesting cheaper options for purchasing insurance.
Can the government take your gold?
You own your gold and therefore the government cannot seize it. You have earned it by working hard for it. It belongs entirely to you. But, this rule is not universal. You can lose your gold if you have been convicted for fraud against the federal governments. Also, if you owe taxes to the IRS, you can lose your precious metals. However, even though your taxes have not been paid, you can still keep your precious metals, even though they are considered the property of United States Government.
How much gold do you need 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 your business grows, you might consider renting out office space or desks. This way, you don't have to worry about paying rent all at once. You only pay one month.
Consider what type of business your company will be running. My company is a website creator. We charge our clients about $1000-2000 per monthly depending on what they order. If you are doing this type of thing, it is important to think about how much you can expect from each client.
Because freelance work pays freelancers, you won't likely get a monthly income if you do freelance work. You may get paid just once every 6 months.
So you need to decide what kind of income you want to generate before you know how much gold you will need.
I recommend starting with $1k to $2k of gold, and then growing from there.
How much should I contribute to my Roth IRA account?
Roth IRAs let you save tax on retirement by allowing you to deposit your own money. These accounts are not allowed to be withdrawn before the age of 59 1/2. However, if your goal is to withdraw funds before that time, there are certain rules you must observe. First, you can't touch your principal (the initial amount that was deposited). This means that regardless of how much you contribute to an account, you cannot take out any more than you initially contributed. If you decide to withdraw more money than what you contributed initially, you will need to pay taxes.
The second rule is that you cannot withdraw your earnings without paying income taxes. Also, taxes will be due on any earnings you take. Let's suppose that you contribute $5,000 annually to your Roth IRA. Let's also assume that you make $10,000 per year from your Roth IRA contributions. The federal income tax on your earnings would amount to $3,500. This leaves you with $6,500 remaining. The amount you can withdraw is limited to the original contribution.
The $4,000 you take out of your earnings would be subject to taxes. You'd still owe $1,500 in taxes. In addition, 50% of your earnings will be subject to tax again (half of 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.
There are two types of Roth IRAs: Traditional and Roth. Traditional IRAs allow you to deduct pretax contributions from your taxable income. When you retire, you can use your traditional IRA to withdraw your contribution balance plus interest. A traditional IRA can be withdrawn up to the maximum amount allowed.
A Roth IRA doesn't allow you to deduct your contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. There is no minimum withdrawal amount, unlike traditional IRAs. It doesn't matter if you are 70 1/2 or older before you withdraw your contribution.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
- (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)
- 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
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Want to Keep Gold in Your IRA at Home? It's Not Exactly Legal – WSJ
cftc.gov
finance.yahoo.com
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
Guidelines for Gold Roth IRA
The best way to invest for retirement is by starting early. Start saving as soon as possible, usually at age 50. You can continue to save throughout your career. It is essential to save enough money each year in order to maintain a steady growth rate.
Additionally, tax-free opportunities like a traditional 401k or SEP IRA are available. These savings vehicles permit you to make contributions, but not pay any tax until your earnings are withdrawn. These savings vehicles are great for those who don't have access or can't get employer matching funds.
It's important to save regularly and 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: Financial Watchdog Urges SEC to Reject Spot Bitcoin ETFs, Citing Investor Harm
Sourced From: news.bitcoin.com/watchdog-group-warns-sec-reject-spot-bitcoin-etfs-or-face-financial-carnage/
Published Date: Sat, 06 Jan 2024 22:30:03 +0000
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