Introduction
U.S. Senator Elizabeth Warren has expressed her dissatisfaction with the U.S. Securities and Exchange Commission (SEC) for granting approval to spot bitcoin exchange-traded funds (ETFs). According to Warren, the securities regulator is not only incorrect in its interpretation of the law but also misguided in its policy regarding the bitcoin ETF decision.
Senator Elizabeth Warren's Criticism
Senator Elizabeth Warren (D-MA), a well-known critic of bitcoin and other cryptocurrencies, wasted no time in criticizing the SEC's recent approval of 11 spot bitcoin ETFs. Taking to social media platform X, Warren conveyed her disapproval, stating that the SEC's decision regarding the bitcoin ETFs is legally and policy-wise incorrect.
Importance of Anti-Money Laundering Rules
Highlighting the need for strict adherence to anti-money laundering rules, Warren emphasized that if cryptocurrencies are going to play a more significant role in the financial system, it becomes even more urgent to ensure that they comply with basic anti-money laundering regulations.
Community Response
Warren's tweet received several comments from the community. Some pointed out that there are already robust laws in place to prevent crypto money laundering, and U.S. agencies such as FinCEN, SEC, and CFTC actively enforce anti-money laundering compliance. They also mentioned that states like New York contribute to anti-money laundering efforts through regulations like Bitlicense. Additionally, it was noted that the SEC's decision was influenced by new circumstances brought up in a recent court case involving Grayscale Investments, LLC v. SEC, a fact that SEC Chair Gary Gensler has admitted.
Warren's Stance on Cryptocurrency
Warren has long been a vocal critic of cryptocurrency. Last year, she joined over 100 legislators in writing a bipartisan note to officials of the Biden administration, expressing concerns about crypto assets being used by Hamas to evade U.S. sanctions. To address these concerns, Warren introduced the Digital Asset Anti-Money Laundering Act, which aims to close loopholes in current laws and bring cryptocurrency companies into greater compliance with anti-money laundering and countering the financing of terrorism frameworks that govern the financial system. However, the Chamber of Digital Commerce considers Warren's bill to be effectively a crypto ban and has set up a petition to oppose it.
Different Perspectives on Bitcoin ETFs
Interestingly, despite their shared skepticism towards cryptocurrencies, Senator Warren and JPMorgan CEO Jamie Dimon find themselves on opposite sides of the spot bitcoin ETF debate. While Dimon has publicly stated that bitcoin has no value and is primarily used for illicit activities, JPMorgan is serving as a lead authorized participant for Blackrock's spot bitcoin ETF.
Conclusion
Senator Elizabeth Warren's criticism of the SEC's approval of spot bitcoin ETFs reflects her concerns about the legal and policy implications of allowing cryptocurrencies to gain further prominence in the financial system. As the debate surrounding bitcoin ETFs continues, it remains to be seen how regulators, lawmakers, and industry leaders will navigate the evolving landscape of cryptocurrencies.
What are your thoughts on Senator Elizabeth Warren's statements regarding the approval of spot bitcoin ETFs by the SEC? Share your opinions in the comments section below.
Frequently Asked Questions
Is buying gold a good retirement plan?
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. There are many ways to invest your gold. It's best to thoroughly research all options before you make a decision.
If you don’t have the funds to invest in safe places, such as a safe deposit box or mining equipment companies, buying shares of these companies might be a better investment. If you are looking for cash flow from your investment, buying gold stocks will work well.
You also can put your money into exchange-traded funds (ETFs), which essentially give you exposure to the price of gold by holding gold-related securities instead of actual gold. These ETFs typically include stocks from gold miners, precious metallics refiners, commodity trading companies, and other commodities.
Is it possible to hold a gold ETF within a Roth IRA
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
Traditional IRAs allow for contributions from both employees and employers. Another way to invest in publicly traded companies is through an Employee Stock Ownership Plan.
An ESOP offers tax benefits because employees can share in the company stock and any profits that it generates. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.
A Individual Retirement Annuity is also possible. You can make regular payments to your IRA throughout your life, and you will also receive income when you retire. Contributions to IRAs do not have to be taxable
How to Open a Precious Metal IRA
The first step in opening an Individual Retirement Account, (IRA), is to decide if it's something you want. If you do, you must open the account by completing Form 8606. Then you must fill out Form 5204 to determine what type of IRA you are eligible for. This form should be completed within 60 days after opening the account. After this, you are ready to start investing. You can also choose to pay your salary directly by making a payroll deduction.
To get a Roth IRA, complete Form 8903. Otherwise, the process will look identical to an existing IRA.
You'll need to meet specific requirements to qualify for a precious metals IRA. The IRS stipulates that you must have earned income and be at least 18-years old. You can't earn more than $110,000 per annum ($220,000 in married filing jointly) for any given tax year. Additionally, you must make regular contributions. These rules apply regardless of whether you are contributing directly to your paychecks or through your employer.
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 won't be allowed to trade shares of stock or bonds.
Your precious metals IRA may also be used to invest in precious-metal companies. Some IRA providers offer this option.
There are two major drawbacks to investing via an IRA in precious metals. First, they don't have the same liquidity as stocks or bonds. It's also more difficult to sell them when they are needed. They don't yield dividends like bonds and stocks. Therefore, you will lose money over time and not gain it.
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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
finance.yahoo.com
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- How do you keep your IRA Gold at Home? It's not legal – WSJ
cftc.gov
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
The best way online to buy gold or silver
Before you can buy gold, it is important to understand its workings. Gold is a precious metallic similar to Platinum. It's very rare, and it is often used as money for its durability and resistance. It is very difficult to use and most people prefer to purchase jewelry made of it over actual bars of Gold.
Two types of gold coins are available today: the legal tender type and the bullion type. The legal tender coins are issued for circulation in a country. They usually have denominations such as $1, $5, $10, and so on.
Bullion coins are minted for investment purposes only, and their values increase over time due to inflation.
They aren't circulated in any currency exchange systems. A person can buy 100 grams of gold for $100. Each dollar spent by the buyer is worth 1 gram.
When looking to buy precious metals, the next thing you should be aware of is where it can be purchased. There are a few options if you wish to buy gold directly from a dealer. First off, you can go through your local coin shop. You might also consider going through a reputable online seller like eBay. You can also look into buying gold online from private sellers.
Individuals who sell gold at wholesale and retail prices are called private sellers. You pay a commission fee between 10% and 15% for each transaction when you sell gold through private sellers. You would receive less money from a private buyer than you would from a coin store or eBay. This option is often a great one for investors in gold, as it gives you greater control over the item's value.
You can also invest in gold physical. Physical gold is much easier to store than paper certificates, but you still have to worry about storing it safely. You need to make sure that your physical gold is safe by storing it in an impenetrable container like a vault or safety depositbox.
If you are looking to purchase gold on your own, you have two options: a bank or an pawnshop. A bank can provide you with a loan to cover the amount you wish to invest in gold. Customers can borrow money from pawnshops to purchase items. Banks usually charge higher interest rates that pawn shops.
Another way to purchase gold is to ask another person to do it. Selling gold is also easy. A company such as GoldMoney.com can help you set up a simple bank account and get paid immediately.
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By: Kevin Helms
Title: Senator Elizabeth Warren Criticizes SEC's Approval of Spot Bitcoin ETFs
Sourced From: news.bitcoin.com/senator-elizabeth-warren-says-sec-is-wrong-for-approving-spot-bitcoin-etfs/
Published Date: Sat, 13 Jan 2024 00:30:55 +0000
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