SEC Is Anything But Infallible
Ripple's chief legal officer, Stuart Alderoty, recently expressed his strong views on the U.S. Securities and Exchange Commission (SEC), describing the regulatory body as "anything but infallible." In a post on the social media platform X, Alderoty criticized the SEC, highlighting that it is "bloated, broken, and beleaguered." He also advised investors not to be intimidated when dealing with the securities watchdog.
Ripple's Wins Against the SEC
Alderoty's statement comes after a series of legal victories for Ripple Labs against the SEC. Notably, on July 13, a decision was made ruling that XRP is not a security. This was followed by the SEC's unsuccessful bid for an interlocutory appeal on October 3. Furthermore, the SEC dropped its lawsuit against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. These wins have raised questions about the SEC's effectiveness and competence.
The SEC's Losses in Other Cases
It's not just Ripple that has triumphed over the SEC. Grayscale Investments also emerged victorious in a lawsuit against the regulatory body. The case revolved around the conversion of Grayscale's bitcoin trust (GBTC) into a spot bitcoin exchange-traded fund (ETF). The U.S. Court of Appeals for the District of Columbia Circuit ruled in favor of Grayscale, stating that the SEC's denial of Grayscale's proposal was arbitrary and capricious. As a result, the SEC was ordered to reevaluate Grayscale's bitcoin ETF conversion application.
Criticism of SEC Chairman Gary Gensler
SEC Chairman Gary Gensler has faced criticism for his enforcement-centric approach to regulating the cryptocurrency industry. Gensler has repeatedly expressed concerns about the presence of hucksters, fraudsters, and non-compliant parties in the crypto space. This has led to increased scrutiny and legal action against crypto firms. In fact, Kraken, a popular crypto exchange, has been sued by the SEC for the second time this year. There is even a bill in Congress seeking to remove Gensler as the chair of the SEC.
The Importance of Staying Strong
Given the SEC's recent setbacks and the growing discontent with its approach, Ripple's chief legal officer's advice to investors is crucial. Alderoty encourages investors not to be intimidated when confronted by the SEC. He reminds them that the SEC's power is derived from the resources of the American taxpayers and that standing up against government oppression and intrusion is deeply rooted in American values.
In conclusion, Ripple's CLO's remarks shed light on the fallibility of the SEC and emphasize the need for investors to stay strong in the face of regulatory challenges. The recent legal victories of Ripple and other crypto firms against the SEC not only undermine the regulator's credibility but also highlight the importance of fighting for fair treatment and regulatory clarity in the crypto industry.
Frequently Asked Questions
How Much of Your IRA Should Be Made Up Of Precious Metals
You should remember that precious metals are not only for the wealthy. You don't need to be rich to make an investment in precious metals. There are many ways that you can make money with gold and silver investments, even if you don't have much money.
You might consider purchasing physical coins, such as bullion bars and rounds. You could also buy shares in companies that produce precious metals. You may also be interested in an IRA transfer program offered by your retirement provider.
You can still get benefits from precious metals regardless of what choice you make. They are not stocks but offer long-term growth.
And unlike traditional investments, they tend to increase in value over time. You'll probably make more money if your investment is sold down the line than traditional investments.
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.
If you place the money in a traditional IRA, 401(k), or other retirement plan, there is no tax when you take it out. You pay taxes only on earnings from dividends and capital gains — which apply only to investments held longer than one year.
Each state has its own rules regarding these accounts. 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 offers a waiting period of up to 70 1/2 years. You should plan and take distributions early enough to cover all retirement savings expenses to avoid penalties.
How much are gold IRA fees?
Six dollars per month is the fee for an Individual Retirement Account (IRA). This fee covers account maintenance fees, as well any investment costs that may be associated with your investments.
If you wish to diversify your portfolio, you may need to pay additional fees. These fees will vary depending upon the type of IRA chosen. Some companies offer free checking, but charge monthly fees for IRAs.
A majority of providers also charge annual administration fees. These fees range from 0% to 1%. The average rate is.25% per year. These rates can be waived if the broker is TD Ameritrade.
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 are “precious metals” because they are hard to find, and therefore very valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Bullion is often used to refer to precious metals. Bullion is the physical metal.
You can buy bullion through various channels, including online retailers, large coin dealers, and some grocery stores.
You can invest directly in bullion with a precious metal IRA instead of buying shares of stock. This means you'll receive dividends every year.
Precious metal IRAs do not require paperwork nor annual fees, unlike regular IRAs. Instead, you pay a small percentage tax on the gains. You can also access your funds whenever it suits you.
Can I buy Gold with my Self-Directed IRA?
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. If you have an existing retirement account, you can transfer funds to another one.
The IRS allows individuals up to $5.500 annually ($6,500 if you are married and filing jointly). This can be contributed to a traditional IRA. Individuals can contribute as much as $1,000 per year ($2,000 if married filing jointly) to a Roth IRA.
If you do decide you want to invest your money in gold, you should look into purchasing physical bullion instead of futures contracts. Futures contracts are financial instruments that are based on gold's price. You can speculate on future prices, but not own the metal. But, physical bullion is real bars of gold or silver that you can hold in one's hand.
Do You Need to Open a Precious Metal IRA
Before opening an IRA, it is important to understand that precious metals aren't covered by insurance. If you lose money in your investment, nothing can be done to recover it. This includes all investments that are lost to theft, fire, flood, or other causes.
Protect yourself against this type of loss by investing in physical gold or silver coins. These coins have been around for thousands and represent a real asset that can never be lost. If you were to sell them today, you would likely receive more than what you paid for them when they were first minted.
You should choose a reputable firm that offers competitive rates. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.
You won't get any returns until you retire if you open an account. Do not forget about the future!
What are some of the advantages and disadvantages to a gold IRA
An Individual Retirement Account (IRA), unlike regular savings accounts, doesn't require you to pay tax on interest earned. An IRA is a great way to save money and not have to pay taxes on the interest you earn. However, there are disadvantages to this type investment.
You could lose all of your accumulated money if you take out too much from your IRA. The IRS may prohibit you from withdrawing funds from your IRA before you are 59 1/2 years of age. If you do decide to withdraw funds from your IRA, you'll likely need to pay a penalty fee.
Another problem is the cost of managing your IRA. Many banks charge between 0.5%-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. 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.
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 allow you the freedom to choose your own 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 allow you to buy gold with more flexibility. They let you set up a contract that has a specific expiration.
You also need to decide the type and level of insurance coverage you want. The standard policy doesn’t provide theft protection or loss due fire, flood, or earthquake. The policy does not cover natural disasters. Additional coverage may be necessary if you reside in high-risk areas.
Apart from insurance, you should consider the costs of storing your precious metals. Storage costs are not covered by insurance. In addition, most banks charge around $25-$40 per month for safekeeping.
To open a IRA in gold, you will need to first speak with a qualified custodian. A custodian maintains track of all your investments and ensures you are in compliance with federal regulations. Custodians aren't allowed to sell your assets. Instead, they must maintain them for as long a time as you request.
Once you've chosen the best type of IRA for you, you need to fill in paperwork describing your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. Your monthly investment goal should be stated.
After filling in the forms, please send them to the provider. After receiving your application, the company will review it and mail you a confirmation letter.
A financial planner is a good idea when opening a gold IRA. Financial planners are experts at investing and can help you determine which type of IRA is best for you. They can help you find cheaper insurance options to lower your costs.
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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
bbb.org
cftc.gov
finance.yahoo.com
irs.gov
How To
The best way to buy gold (or silver) online
Before you can buy gold, it is important to understand its workings. Precious metals like gold are similar to platinum. It is rare and used as money due to its durability and resistance against corrosion. It is very difficult to use and most people prefer to purchase jewelry made of it over actual bars of Gold.
There are two types of gold coins available today – one type is legal tender, while the other is called bullion. Legal tender coins are minted for circulation in a country and usually include denominations like $1, $5, $10, etc.
Bullion coins should only be used for investment purposes. Inflation can cause their value to increase.
They can't be exchanged in currency exchange systems. One example is that if someone buys $100 worth gold, they get 100 grams with a $100 value. The buyer receives 1 gram of gold for every dollar spent.
Next, you need to find out where to buy gold. There are several options available if your goal is to purchase gold from a dealer. You can start by visiting your local coin shop. You can also go to a reputable website such as eBay. You can also purchase gold through private online sellers.
Private sellers are individuals that offer gold at wholesale or retail prices. Private sellers will charge you a 10% to 15% commission for every transaction. Private sellers will typically get you less than a coin shop, eBay or other online retailers. This option can be a good choice for investing in gold because it allows you to control the price.
Another way to buy gold is by investing in physical gold. Although physical gold is easier to store than paper certificates you will still need to ensure it is safe. It is important to keep your physical gold safe in an impenetrable box such as a vault, safety deposit box or other secure container.
When buying gold on your own, you can visit a bank or a pawnshop. A bank can give you a loan up to the amount you intend to invest in Gold. Customers can borrow money from pawnshops to purchase items. 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. You can contact a company like GoldMoney.com to set up an account and receive payments right away.
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By: Kevin Helms
Title: Ripple’s CLO Highlights SEC’s Fallibility and Advises Investors to Stay Strong
Sourced From: news.bitcoin.com/ripples-clo-says-sec-is-anything-but-infallible-advises-dont-be-intimidated-when-they-come-knocking/
Published Date: Sat, 02 Dec 2023 01:00:41 +0000
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