SEC's Productive Year in Crypto Enforcement
The U.S. Securities and Exchange Commission (SEC) has released its latest enforcement results for the fiscal year 2023, emphasizing its efforts in regulating crypto assets. According to the SEC, fiscal year 2023 was highly productive and impactful in terms of its enforcement actions related to crypto asset securities. SEC Chairman Gary Gensler described the Division of Enforcement's work as beneficial to the investing public, acting as a vigilant cop on the beat.
Enforcement Actions in Fiscal Year 2023
The SEC announced that it had filed a total of 784 enforcement actions, reflecting a 3% increase compared to the previous fiscal year. Chair Gary Gensler highlighted the positive impact of the Division of Enforcement's work on the investing public.
SEC's Focus on Crypto Asset Cases
Fiscal year 2023 witnessed the SEC's continued focus on enforcing regulations within the crypto asset space. The regulator took various enforcement measures against billion-dollar crypto fraud schemes, unregistered crypto asset offerings, platforms, intermediaries, and illegal celebrity promotion. Notably, the SEC mentioned several high-profile cases involving Terraform Labs, Do Kwon, Richard Heart, Samuel Bankman-Fried, Genesis, Gemini, Celsius, Kraken, Nexo, Beaxy, Bittrex, Binance, and Coinbase.
First Actions Against NFT Issuers
In fiscal year 2023, the SEC also took its first enforcement actions against non-fungible token (NFT) issuers. Impact Theory LLC and Stoner Cats 2 LLC were charged by the regulator in relation to their NFT activities.
Action Against Influencers
The SEC also addressed cases where influencers allegedly promoted crypto asset securities without disclosing their compensation. The individuals involved in these cases included Paul Pierce, Kim Kardashian, Lindsay Lohan, Jake Paul, Michele Mason (Kendra Lust), Miles Parks McCollum (Lil Yachty), Shaffer Smith (Ne-Yo), Aliaune Thiam (Akon), DeAndre Cortez Way (Soulja Boy), and Austin Mahone.
Record Number of Crypto Enforcement Actions by CFTC
Last week, the Commodity Futures Trading Commission (CFTC) disclosed that it had filed a record number of enforcement actions related to cryptocurrencies in fiscal year 2023. The CFTC stated that these actions accounted for more than 49% of all actions filed during the period, focusing on conduct associated with digital asset commodities.
What are your thoughts on the SEC's enforcement actions in the crypto industry? Share your opinions in the comments below.
Frequently Asked Questions
What are the pros & cons of 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 great for people who want to save money but don't want to pay tax on the interest they earn. But, this type of investment comes with its own set of disadvantages.
You could lose all of your accumulated money if you take out too much from your IRA. You might also not be able to withdraw from your IRA until the IRS deems you to be 59 1/2. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
The downside is that managing your IRA requires fees. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management charges ranging anywhere from $10 to $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. You might be required to buy insurance that covers losses up to $500,000.
If you choose to have a gold IRA you will need to establish how much gold to use. You may be limited in the amount of gold you can have by some providers. Others let you pick your weight.
It is also up to you to decide whether you want to purchase physical gold or futures. Gold futures contracts are more expensive than physical gold. However, futures contracts give you flexibility when buying gold. Futures contracts allow you to create a contract with a specified expiration date.
Also, you will need to decide on the type of insurance coverage you would like. Standard policies don't cover theft protection, loss due to fire, flood or earthquake. However, it does cover damage caused by natural disasters. If you live near a high-risk region, you might want to consider additional coverage.
You should also consider the cost of storage for your gold. Storage costs are not covered by insurance. 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. Custodians keep track of your investments and ensure compliance with federal regulations. Custodians can't sell assets. Instead, they must keep your assets for as long you request.
Once you have chosen the right type of IRA to suit your needs, it is time to fill out paperwork defining your goals. Your plan should include information about the investments you want to make, such as stocks, bonds, mutual funds, or real estate. Also, you should specify how much each month you plan to invest.
You will need to fill out the forms and send them to your chosen provider together with a check for small deposits. 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. A financial planner is an expert in investing and can help you choose the right type of IRA for you. They can help reduce your expenses by helping you find cheaper alternatives to buying insurance.
What proportion of your portfolio should you have in precious metals
To answer this question, we must first understand what precious metals are. Precious metals are those elements that have an extremely high value relative to other commodities. This makes them very valuable in terms of trading and investment. Gold is currently the most widely traded precious metal.
But, there are other types of precious metals available, including platinum and silver. While gold's price fluctuates during economic turmoil, it tends to remain relatively stable. It is also unaffected significantly by inflation and Deflation.
The general trend is for precious metals to increase in price with the overall market. That said, they do not always move in lockstep with each other. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. This is because investors expect lower interest rates, making bonds less attractive investments.
The opposite effect happens when the economy is strong. 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.
Therefore, to maximize profits from investing in precious metals, you must diversify across multiple precious metals. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.
Who owns the gold in a Gold IRA?
An individual who has gold is considered to be a “form of money” by the IRS and subject to taxation.
This tax-free status is only available to those who have owned at least $10,000 of gold and have kept it for at minimum five years.
Although gold can help to prevent inflation and price volatility, it's not sensible to have it if it's not going to be used.
If you plan on selling the gold someday, you'll need to report its value, which could affect how much capital gains taxes you owe when you cash in your investments.
You should consult a financial planner or accountant to see what options are available to you.
Are You Ready to Invest in Gold?
It depends on how much you have saved and if gold was available at the time you started saving. 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. It is a good choice for retirees.
Gold is more volatile than most other investments. As a result, its value changes over time.
However, it doesn't necessarily mean that you shouldn't invest your money in gold. It just means that you need to factor in fluctuations to your overall portfolio.
Another benefit of gold is that it's a tangible asset. Gold can be stored more easily than stocks and bonds. It can be easily transported.
Your gold will always be accessible as long you keep it in a safe place. 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.
It's also a good idea to have a portion your savings invested in something which isn't losing value. Gold usually rises when the stock market falls.
You can also sell gold anytime you like by investing in it. You can easily liquidate your investment, just as with stocks. 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 by purchasing a few ounces. Then add more as needed.
The goal is not to become rich quick. It's not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
Even though gold is not the best investment, it could be an excellent addition to any retirement plan.
How is gold taxed within an IRA?
The fair market value of gold sold is the basis for tax. Gold is not subject to tax when it's purchased. It is not considered income. If you decide to sell it later, there will be a taxable gain if its price rises.
You can use gold as collateral to secure loans. Lenders look for the highest return when you borrow against assets. Selling gold is usually the best option. The lender might not do this. They may keep it. Or, they may decide to resell the item themselves. In either case, you risk losing potential profits.
To avoid losing money, only lend against gold if you intend to use it for collateral. It's better to keep it alone.
How do you withdraw from an IRA that holds precious metals?
First, decide if it is possible to withdraw funds from an IRA. Then make sure you have enough cash to cover any fees or penalties that may come with withdrawing funds from your retirement plan.
Consider opening a taxable brokerage instead of an IRA if it is possible to pay a penalty if your withdrawal is made before the deadline. This option is also available if you are willing to pay taxes on the amount you withdraw.
Next, determine how much money you plan to withdraw from your IRA. This calculation is dependent on several factors like your age when you take the money out, how long you have had the account, and whether or not your plan to continue contributing.
Once you determine the percentage of your total saved money you want to convert into cash, then you need to choose which type IRA you will use. Traditional IRAs allow for you to withdraw funds without tax when you turn 59 1/2. Roth IRAs, on the other hand, charge income taxes upfront but you can access your earnings later and pay no additional taxes.
Finally, you'll need to open a brokerage account once these calculations are completed. Brokers often offer promotional offers and signup bonuses to encourage people into opening accounts. However, a debit card is better than a card. This will save you unnecessary fees.
When you finally get around to making withdrawals from your precious metal IRA, you'll need a safe place where you can store your coins. While some storage facilities accept bullion bars and others require that you purchase individual coins, others will allow you to store your coins in their own safe. You will need to weigh each one before making a decision.
For example, storing bullion bars requires less space because you aren't dealing with individual coins. You will need to count each coin individually. However, individual coins can be stored to make it easy to track their value.
Some prefer to keep their money in a vault. Others prefer to store them in a safe deposit box. Whatever method you choose to store your bullion, you should ensure it is safe and secure so you can enjoy its many benefits for many years.
How is gold taxed by Roth IRA?
An investment account's tax rate is determined based upon its current value, rather than what you originally paid. So if you invest $1,000 in a mutual fund or stock and then sell it later, any gains are subject to taxes.
But if you put the money into a traditional IRA or 401(k), there's no tax when you withdraw the money. Taxes are only charged on capital gains or dividends earned, which only apply to investments longer than one calendar year.
Each state has its own rules regarding these accounts. Maryland is an example of this. You must withdraw your funds within 60 calendar days of turning 59 1/2. Massachusetts allows you to wait until April 1. And in New York, you have until age 70 1/2 . To avoid penalty fees, it is important to plan and take distributions in time to pay all your retirement savings.
Statistics
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
External Links
investopedia.com
- Do You Need a Gold IRA to Get Retirement?
- What are the Options Types, Spreads, Example and Risk Metrics
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's Not Exactly Legal – WSJ
bbb.org
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
How To
A rising trend in gold IRAs
As investors seek to diversify their portfolios while protecting themselves from inflation, the trend towards gold IRAs is on the rise.
Gold IRA owners can now invest in physical gold bullion or bars. This IRA can be used to grow your wealth tax-free and is an alternative option to stocks and bonds.
Investors can manage their assets with a gold IRA without worrying about market volatility. 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.
Additionally, the gold IRA has many benefits. It allows you to quickly transfer your gold ownership to your heirs. The IRS doesn't consider gold a commodity or currency.
Investors who seek financial stability and a safe haven are finding the gold IRA increasingly attractive.
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By: Kevin Helms
Title: SEC Publishes Enforcement Results for Fiscal Year 2023, Highlights Crypto Asset Cases
Sourced From: news.bitcoin.com/sec-announces-highly-productive-year-for-crypto-enforcement-actions/
Published Date: Thu, 16 Nov 2023 00:30:54 +0000
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