Lawmakers Call for Briefing on SEC's Compromised X Account
Four U.S. lawmakers have written a letter to U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler, demanding a briefing on the SEC's compromised X account. The breach led to a false tweet on January 9, announcing the approval of bitcoin exchange-traded funds (ETFs), a decision that had not been made by the commission at the time. The official X account of the SEC was compromised on Tuesday evening.
The letter was signed by Patrick McHenry, Chairman of the House Financial Services Committee, Bill Huizenga, Chairman of the Subcommittee on Oversight and Investigations, French Hill, Chairman of the Subcommittee on Digital Assets, Financial Technology and Inclusion, and Ann Wagner, Chairman of the Subcommittee on Capital Markets.
SEC's Ability to Communicate with Market Participants Questioned
In the letter, the lawmakers emphasized the importance of the SEC's ability to communicate with market participants in fulfilling its mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. They highlighted the SEC's failure to have two-factor authentication enabled on its account and the unidentified individual's control over a phone number associated with the @SECGov account.
The lawmakers expressed their concern over this failure and demanded a briefing from the SEC to better understand how the breach occurred and how the commission will prevent such incidents in the future.
Confirmation of Account Compromise and Lack of Security Measures
Following the incident, X confirmed that the SEC's account was compromised. The preliminary investigation revealed that the compromise was not due to any breach of X's systems but rather due to an unidentified individual obtaining control over a phone number associated with the account through a third party. It was also confirmed that the account did not have two-factor authentication enabled at the time of the breach. X encouraged all users to enable this extra layer of security.
The SEC issued a statement stating that it will work with law enforcement and government partners to investigate the matter and determine appropriate next steps regarding the unauthorized access and any related misconduct.
Lawmakers Express Displeasure and Demand Accountability
Several other lawmakers also expressed their dissatisfaction with the SEC and Chair Gensler after the incident. Senator J. D. Vance called the agency's error "unacceptable" and demanded an explanation. Senator Bill Hagerty stated that Congress needs answers on this "colossal market-moving mistake" and emphasized the need for accountability. Senator Cynthia Lummis highlighted the potential market manipulation caused by fraudulent announcements and called for transparency regarding the incident.
Conclusion
The compromise of the SEC's X account and the subsequent fake tweet about the approval of bitcoin ETFs have raised concerns among lawmakers. They are demanding answers and accountability from the SEC to ensure the integrity of the commission's communication channels and prevent similar incidents in the future. The investigation into the breach and the implementation of stronger security measures will be crucial in restoring trust and maintaining the SEC's role in investor protection and market regulation.
Frequently Asked Questions
Should you Invest In Gold For Retirement?
How much money you have saved, and whether or not gold was an option when you first started saving will determine the answer. You can invest in both options if you aren't sure which option is best for you.
Gold offers potential returns and is therefore a safe investment. Retirement investors will find gold a worthy investment.
Gold is more volatile than most other investments. As a result, its value changes over time.
But this doesn't mean you shouldn't invest in gold. You should just factor the fluctuations into any overall portfolio.
Another benefit to gold is its tangible value. Gold can be stored more easily than stocks and bonds. It can also be transported.
You can always access your gold as long as it is kept safe. You don't have to pay storage fees for physical gold.
Investing in gold can help protect against inflation. It's a great way to hedge against rising prices, as gold prices tend to increase along with other commodities.
Additionally, it will be a benefit to have some of your savings invested into something that won't lose value. Gold rises in the face of a falling stock market.
Investing in gold has another advantage: you can sell it anytime you want. Like stocks, you can sell your position anytime you need cash. You don't even have to wait until you retire.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all your eggs on one basket.
Don't buy too many at once. Start with a few ounces. You can add more as you need.
It's not about getting rich fast. Instead, the goal here is to build enough wealth to not need to rely upon Social Security benefits.
Even though gold is not the best investment, it could be an excellent addition to any retirement plan.
Can the government steal your gold?
Your gold is yours, so the government cannot confiscate it. It's yours, and you earned it by working hard. It belongs to your. This rule could be broken by exceptions. If you are convicted of fraud against the federal government, your gold can be forfeit. Your precious metals can also be lost if you owe tax to the IRS. However, even if you don't pay your taxes, your gold can be kept as property of the United States Government.
Should you open a Precious Metal IRA
The most important thing you should know before opening an IRA account is that precious metals are not covered by insurance. There is no way to recover money that you have invested in precious metals. All your investments can be lost due to theft, fire or flood.
You can protect yourself against such losses by purchasing physical gold and silver coins. These items have been around for thousands of years and represent real value that cannot be lost. These items are worth more today than they were when first produced.
Choose a reputable company with competitive rates and quality products if you are looking to open an IRA. You should also consider using a third party custodian to protect your assets and give you access at any time.
If you decide to open an account, remember that you won't see any returns until after you retire. Keep your eyes open for the future.
Are gold investments a good idea for an IRA?
If you are looking for a way to save money, gold is a great investment. You can also diversify your portfolio by investing in gold. But gold has more to it than meets the eyes.
It's been used throughout history as a currency, and even today, it remains a popular form of payment. It's often referred to as “the world's oldest currency.”
Gold, unlike other paper currencies created by governments is mined directly from the earth. That makes it very valuable because it's rare and hard to create.
The price of gold fluctuates based on supply and demand. When the economy is strong, people tend to spend more money, which means fewer people mine gold. The result is that gold's value increases.
On the flip side, when the economy slows down, people hoard cash instead of spending it. This causes more gold to be produced, which lowers its value.
This is why investing in gold makes sense for individuals and businesses. If you invest in gold, you'll benefit whenever the economy grows.
Also, your investments will earn you interest which can help increase your wealth. Plus, you won't lose money if the value of gold drops.
How to Open a Precious Metal IRA?
First, you must decide if your Individual Retirement Account (IRA) is what you want. Once you have decided to open an Individual Retirement Account (IRA), you will need to complete Form 806. Next, fill out Form 5204. This will determine the type of IRA that you are eligible for. This form should be filled within 60 calendar days of opening the account. Once this is done, you can start investing. You could also opt to make a contribution directly from your paycheck by using payroll deduction.
Complete Form 8903 if your Roth IRA option is chosen. The process for an ordinary IRA will not be affected.
To be eligible to have a precious metals IRA you must meet certain criteria. The IRS states that you must be at least 18 and have earned income. You can't earn more than $110,000 per annum ($220,000 in married filing jointly) for any given tax year. And, you have to make contributions regularly. These rules apply whether you're contributing through an employer or directly from your paychecks.
You can invest in precious metals IRAs to buy gold, palladium and platinum. But, you'll only be able to purchase physical bullion. This means you can't trade shares of stock and bonds.
Your precious metals IRA can be used to directly invest in precious metals-related companies. Some IRA providers offer this option.
There are two major drawbacks to investing via an IRA in precious metals. First, they're not as liquid as stocks or bonds. It's also more difficult to sell them when they are needed. Second, they are not able to generate dividends as stocks and bonds. Therefore, you will lose money over time and not gain it.
What proportion of your portfolio should you have in precious metals
This question can only be answered if we first know what precious metals are. Precious metals refer to elements with a very high value relative other commodities. This makes them extremely valuable for trading and investing. Gold is currently the most widely traded precious metal.
There are however many other types, including silver, and platinum. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is also unaffected significantly by inflation and Deflation.
The general trend is for precious metals to increase in price 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 rates which makes bonds less appealing investments.
Contrary to this, when the economy performs well, the opposite happens. Investors favor safe assets like Treasury Bonds, and less precious metals. They are more rare, so they become more expensive and less valuable.
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.
Statistics
- You can only purchase gold bars at least 99.5% purity. (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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
External Links
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
finance.yahoo.com
investopedia.com
irs.gov
How To
The History of Gold as an Asset
From the beginning of history, gold was a popular currency. It was popular because of its purity, divisibility. uniformity. scarcity and beauty. Aside from its inherent value, it could be traded internationally. Because there were no internationally recognized standards for measuring and weighing gold, the different weights of this metal could be used worldwide. One pound sterling, for example, was equivalent in England to 24 carats, and one livre tournois, in France, to 25 carats. A mark, on the other hand, was equivalent in Germany to 28 carats.
In the 1860s, the United States began issuing American coins made up of 90% copper, 10% zinc, and 0.942 fine gold. This resulted in a decline of foreign currency demand and an increase in the price. This was when the United States started minting large quantities of gold coins. The result? Gold prices began to fall. They needed to pay off debt because they had too much money coming into circulation. They decided to sell some excess gold to Europe in order to do this.
Most European countries distrusted the U.S. Dollar and began to accept gold as payment. Many European countries started to accept paper money as a substitute for gold after World War I. Since then, the price of gold has increased significantly. Even though the price fluctuates, gold is still one of best investments.
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By: Kevin Helms
Title: SEC Investigates X Account Breach, Lawmakers Demand Answers
Sourced From: news.bitcoin.com/us-lawmakers-slam-sec-over-fake-bitcoin-etf-tweet-say-this-failure-is-unacceptable/
Published Date: Fri, 12 Jan 2024 05:00:38 +0000
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