On October 3, a significant event unfolded in the U.S. District Court. Judge Analisa Torres rejected the Securities and Exchange Commission's (SEC) interim appeal against her previous ruling made on July 13. This development marked another setback for the SEC. If this is news to you, refer back to our previous discussion titled "Ripple vs. SEC — A Reprieve for an Embattled Sector?"
Ripple's Ongoing Legal Struggle with the SEC
The legal dispute between Ripple and the SEC has been a major talking point, prompting much discussion since it first made the news. Judge Torres's initial ruling was eagerly awaited. One of the most critical aspects of her decision was her determination that the public exchange sales of the XRP digital token adhered to federal securities laws. This was because buyers did not have a rational expectation of profit based on Ripple's efforts. However, the SEC remains unwavering in its stance.
Understanding the Concept of an Interlocutory Appeal
An interlocutory appeal is lodged whilst other components of a case are still in progress. Those who recall Judge Torres's earlier ruling will remember that this case is due for trial on April 23, 2024. In this scenario, the SEC filed a motion requesting permission to appeal Torres's conclusions about the "programmatic" sales of XRP and "other distributions" of XRP as compensation for services. The SEC argued that this potential appeal would be crucial to a considerable number of lawsuits. Nonetheless, Judge Torres thwarted the agency once more, concluding that the SEC had not demonstrated that there were controlling questions of law or substantial grounds for differences of opinion.
The Ripple vs SEC Saga Continues
The crypto community toasted Judge Torres' initial decision and her subsequent denial of the interlocutory appeal. However, this case is far from concluded. Following the trial on April 23, the SEC could challenge the entire decision, which Ripple and XRP holders would likely want to evade, even though a favourable ruling from a federal court of appeals might be on the horizon for Ripple. If the SEC motioned for and obtained permission to appeal the whole case, it might be a couple of years before Ripple and the broader industry attain the clarity they crave. That's assuming Ripple triumphs again, which is quite a big assumption, given that Judge Torres' initial ruling was not a total win for Ripple.
As pointed out in our preceding discussion on this case, Judge Torres did conclude that Ripple had infringed federal securities laws regarding its sales of XRP to institutional investors. Additionally, other judges might opt not to adhere to Judge Torres' ruling, whether they disagree with her interpretation of federal securities law or find it irrelevant to a different set of facts. Consider Judge Jed Rakoff's ruling in the SEC's case against Terraform Labs. Here, Judge Rakoff stated that the SEC had a "viable argument" that Terraform Labs' Terra USD token was a security when traded on public exchanges. However, it's worth noting that Judge Rakoff's conclusion was made during his consideration of Terraform's motion to dismiss the SEC's case. This implies that while Judge Rakoff had to consider all reasonable inferences in the SEC's favour, he won't be obliged to do so when adjudicating the case on its merits.
For the time being, Ripple and the SEC will carry on with their trial preparations for April. However, with crypto still in regulatory limbo, other judges might soon take elements of Judge Torres' July 13 decision as controlling precedent. Because Congress has not yet passed a comprehensive bill addressing crypto, it's more crucial than ever to seek advice from legal professionals knowledgeable in digital assets. Consulting with the legal team at Kelman PLLC early on is the most efficient way to ensure compliance with potentially applicable laws and regulations and avoid legal pitfalls and costs that could otherwise hinder your business.
We'd love to hear your views on the recent Ripple Labs ruling. Please feel free to share your thoughts and perspectives on this topic in the comments section below.
Frequently Asked Questions
Is gold buying a good retirement option?
Although buying gold as an investment might not sound appealing at first, when you look at the average annual gold consumption worldwide, it is worth looking into.
Physical bullion is the most popular method of investing in gold. 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.
What are some of the advantages and disadvantages to a gold IRA
An Individual Retirement Account is a more beneficial option than regular savings accounts. You don't pay taxes on any interest earned. This makes an IRA a great choice for people who are looking to save money but don’t want to pay any tax on the interest earned. There are some disadvantages to this investment.
You could lose all of your accumulated money if you take out too much from your IRA. Also, the IRS may not allow you to make withdrawals from your IRA until you're 59 1/2 years old. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
You will also need to pay fees for managing your IRA. Many banks charge between 0.5% and 2.0% per year. Other providers may charge monthly management fees, ranging between $10 and $50.
Insurance is necessary if you wish to keep your money safe from the banks. Many insurers require that you own at least one ounce of gold before you can make a claim. Insurance that covers losses upto $500,000.
You will need to decide how much gold you wish to use if you opt for a gold IRA. You may be limited in the amount of gold you can have by some providers. Others let you choose your weight.
It is also up to you to decide whether you want to purchase physical gold or futures. Physical gold is more costly than gold futures. Futures contracts, however, allow for greater flexibility in buying gold. They allow you to set up a contract with a specific expiration date.
You also need to decide the type and level of insurance coverage you want. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. It does offer coverage for natural disasters. If you live in a high-risk area, you may want to add additional coverage.
Insurance is not enough. You also need to think about the cost of gold storage. Insurance won't cover storage costs. Safekeeping costs can be as high as $25-40 per month at most banks.
Before you can open a gold IRA you need to contact a qualified Custodian. Custodians keep track of your investments and ensure compliance with federal regulations. Custodians don't have the right to sell assets. Instead, they must hold them as long as 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.
Once you have completed the forms, you will need to mail them to your provider with a check and a small deposit. The company will then review your application and mail you a letter of confirmation.
When opening a gold IRA, you should consider using a financial planner. A financial planner can help you decide the type of IRA that is right for your needs. They can also help you lower your expenses by finding cheaper alternatives to purchasing insurance.
What are the fees associated with an IRA for gold?
$6 per month is the Individual Retirement Account Fee (IRA). This includes account maintenance fees and investment costs for your chosen investments.
If you want to diversify, you may be required to pay extra fees. The type of IRA you choose will determine the fees. Some companies offer free checking accounts, but charge monthly fees to open IRA accounts.
In addition, most providers charge annual management fees. These fees can range from 0% up to 1%. The average rate is.25% annually. These rates are often waived if a broker like TD Ameritrade is used.
What is the best precious metal to invest in?
This question depends on how risky you are willing to take, and what return you want. Gold is a traditional haven investment. However, it is not always the most profitable. If you are looking for quick profits, gold might not be the right investment. You should invest in silver if you have the patience and time.
If you don’t want to be rich fast, gold might be the right choice. If you are looking for a long-term investment that will provide steady returns, silver may be a better choice.
How much of your portfolio should be in precious metals?
This question can only be answered if we first know what precious metals are. Precious metals have elements with an extremely high worth relative to other commodity. This makes them very valuable in terms of trading and investment. Gold is currently the most widely traded precious metal.
There are also many other precious metals such as platinum and silver. The price of gold tends to fluctuate but generally stays at a reasonably stable level during periods of economic turmoil. It also remains relatively unaffected by inflation and deflation.
All precious metals prices tend to rise with the overall market. They do not always move in the same direction. For example, when the economy is doing poorly, the price of gold typically rises while the prices of other precious metals tend to fall. Investors expect lower interest rate, making bonds less appealing investments.
When the economy is healthy, however, the opposite effect occurs. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand 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.
What precious metals do you have that you can invest in for your retirement?
The best precious metal investments are gold and silver. They're both easy to buy and sell and have been around forever. These are great options to diversify your portfolio.
Gold: Gold is one of man's oldest forms of currency. It is stable and very secure. It's a great way to protect wealth in times of uncertainty.
Silver: The popularity of silver has always been a concern for investors. It's a good choice for those who want to avoid volatility. Silver tends instead to go up than down, which is unlike gold.
Platinium: Platinum is another form of precious metal that's becoming increasingly popular. It's resistant to corrosion and durable, similar to gold and silver. It's however much more costly than any of its counterparts.
Rhodium – Rhodium is used to make catalytic conversions. It is also used for jewelry making. It is relatively affordable when compared to other types.
Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It's also much more affordable. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
What Is a Precious Metal IRA?
A precious metal IRA allows you to diversify your retirement savings into gold, silver, platinum, palladium, rhodium, iridium, osmium, and other rare metals. These are “precious metals” because they are hard to find, and therefore very valuable. These metals are great investments and can help protect your financial future from economic instability and inflation.
Precious metals are sometimes called “bullion.” Bullion refers actually to the metal.
You can buy bullion through various channels, including online retailers, large coin dealers, and some 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 are not like regular IRAs. They don't need paperwork and don't have to be renewed annually. Instead, you pay only a small percentage tax on your gains. Plus, you get free access to your funds whenever you want.
Statistics
- 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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- (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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
External Links
bbb.org
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement plans
irs.gov
cftc.gov
How To
Gold IRAs: A Growing Trend
Investors are increasingly turning to gold IRAs as a way to diversify and protect their portfolios from inflation.
Owners of the gold IRA can use it to invest in physical bars and bullion gold. It is tax-free and can be used by investors who aren't concerned about stocks and bond.
Investors can have confidence in their investments and avoid market volatility with a gold IRA. Investors can use the gold IRA for protection against inflation and potential problems.
Investors also enjoy the benefits of owning physical gold, which includes its unique properties such as durability, portability, and divisibility.
Additional benefits of the gold IRA include the ability to quickly pass ownership to heirs. Additionally, the IRS does not consider gold a money or a commodity.
Investors who seek financial stability and a safe haven are finding the gold IRA increasingly attractive.
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By: Guest Author
Title: Ripple vs SEC: A Reflection on the Recent U.S. District Court Decision
Sourced From: news.bitcoin.com/sec-suffers-another-setback-against-ripple-what-next/
Published Date: Sat, 14 Oct 2023 07:30:58 +0000
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