A financial watchdog group called Better Markets has recently appealed to the U.S. Securities and Exchange Commission (SEC) to turn down spot bitcoin exchange-traded funds (ETFs), stating that they will cause significant harm to investors. The organization features a testimonial from U.S. Senator Elizabeth Warren on its website. The president of Better Markets, who reportedly has a close relationship with SEC Chairman Gary Gensler, warned the securities regulator about the potential financial damage that could occur.
Better Markets Files Comment Letter Urging SEC to Reject Spot Bitcoin ETFs
Better Markets, a non-profit and non-partisan organization based in Washington, D.C., submitted a supplemental comment letter to the SEC on Friday. The letter outlined the reasons why the securities regulator should reject applications for spot bitcoin exchange-traded products (ETPs), including bitcoin ETFs. The letter specifically referenced several proposed spot bitcoin ETFs from companies such as Blackrock, Vaneck, Ark Invest, Invesco, and Wisdomtree.
In the comment letter, Better Markets emphasized that the SEC must adhere to the law and reject spot bitcoin ETPs to prevent investor harm. Dennis Kelleher, the cofounder, president, and CEO of Better Markets, issued a statement expressing concerns about the approval of spot bitcoin ETPs. Kelleher stated that approving these products would expose American investors and retirees to fraud and manipulation risks that the SEC aims to prevent.
Kelleher further warned that allowing the crypto industry to distribute a financial product that lacks value and is akin to gambling would lead to financial devastation. He urged the SEC to deny the proposed rule changes, as it is required by law.
Connections Between Better Markets, Senator Elizabeth Warren, and SEC Chairman Gary Gensler
Several individuals on the social media platform X pointed out the links between Better Markets, Senator Elizabeth Warren, and SEC Chairman Gary Gensler. On the Better Markets website, Senator Warren's testimonial is prominently featured, praising the organization for advocating financial reform to protect the U.S. economy.
In regards to Gensler, journalist Eleanor Terrett from Fox Business highlighted their close relationship. They both served on President Biden's transition team, and Kelleher, the CEO of Better Markets, has expressed strong anti-crypto sentiment. Kelleher has previously stated that crypto has no legitimate or socially useful purpose and is essentially a fraud on the public.
While some in the crypto community found Better Markets' arguments unconvincing, there are concerns that Gensler may be inclined to reject spot bitcoin ETF applications.
Do you believe that Better Markets will be successful in persuading the SEC to reject spot bitcoin ETF applications? Share your thoughts in the comments section below.
Frequently Asked Questions
Is it a good idea to open a Precious Metal IRA
Before opening an IRA, it is important to understand that precious metals aren't covered by insurance. It is impossible to get back money if you lose your investment. This includes losing all your investments due to theft, fire, flood, etc.
You can protect yourself against such losses by purchasing physical gold and silver coins. These items are timeless and have a lifetime value. You would probably get more if you sold them today than you paid when they were first created.
Consider a reputable business that offers low rates and good products when opening an IRA. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.
Do not open an account unless you're ready to retire. Remember the future.
Can the government steal your gold?
Because you have it, the government can't take it. You have earned it by working hard for it. It belongs entirely to you. However, there may be some exceptions to this rule. For example, if you were convicted of a crime involving fraud against the federal government, you can lose your gold. Your precious metals can also be lost if you owe tax to the IRS. However, even if taxes are not paid, gold is still your property.
How does a gold IRA work?
You can buy physical gold bullion coins at any time. You don’t have to wait to begin investing in gold.
You can keep gold in an IRA forever. Your gold holdings will not be subject to tax when you are gone.
Your heirs inherit your gold without paying capital gains taxes. You don't need to include your gold in your final estate report, as it isn't part of the estate.
You'll first have to set up an individual retirement account (IRA) to open a gold IRA. Once you've completed this step, an IRA administrator will be appointed to your account. This company acts like a middleman between the IRS and you.
Your gold IRA Custodian will manage the paperwork and submit all necessary forms to IRS. This includes filing annual reports.
Once your gold IRA is established, you can purchase gold bullion coins. Minimum deposit is $1,000 You'll get a higher rate of interest if you deposit more.
Taxes will be charged on gold you have withdrawn from an IRA. If you are withdrawing your entire balance, you will owe income tax plus a 10% penalty.
If you only take out a very small percentage of your income, you may not need to pay tax. However, there are some exceptions. You'll owe federal income tax and a 20% penalty if you take out more than 30% of your total IRA assets.
You should avoid taking out more than 50% of your total IRA assets yearly. You could end up with severe financial consequences.
What precious metal is best for investing?
The answer to this question depends on how much risk you are willing to take and what type of return you want. Although gold has traditionally been considered a safe investment choice, it may not be the most profitable. For example, if you need a quick profit, gold may not be for you. If you have the patience to wait, then you might consider investing in silver.
If you don’t desire to become rich quickly, gold may be your best option. However, silver might be a better option if you're looking for an investment that provides steady returns over long periods.
How Do You Make a Withdrawal from a Precious Metal IRA?
First decide if your IRA account allows you to withdraw funds. After that, you need to decide if you want to withdraw funds from an IRA account. Next, make sure you have enough money in order for you pay any fees or penalties.
A taxable brokerage account is a better option than an IRA if you are prepared to pay a penalty for early withdrawals. This option will require you to pay taxes on the amount that you withdraw.
Next, you need to determine how much money is going to be taken out from your IRA. This calculation will depend on many factors including your age at the time of withdrawal, how long the account has been in your possession, and whether you plan to continue contributing towards your retirement plan.
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 you to withdraw funds tax-free when you turn 59 1/2 while Roth IRAs charge income taxes upfront but let you access those earnings later without paying additional taxes.
After these calculations have been completed, you will need to open a brokerage bank account. To encourage customers to open accounts, brokers often offer signup bonuses and promotions. 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. Some storage facilities will accept bullion bars, others require you to buy individual coins. You will need to weigh each one before making a decision.
Because you don't have to store individual coins, bullion bars take up less space than other items. You will need to count each coin individually. On the flip side, storing individual coins allows you to easily track their value.
Some people prefer to keep coins safe in a vault. Some people prefer to store their coins safely in a vault. Whichever method you choose, make sure you store your bullion safely so you can enjoy its benefits for years to come.
How much gold can you keep in your portfolio
The amount of capital that you require will determine how much money you can make. For a small start, $5k to $10k is a good range. You could then rent out desks and office space as your business grows. You don't need to worry about paying rent every month. You only pay one month.
You also need to consider what type of business you will run. My company is a website creator. We charge our clients about $1000-2000 per monthly depending on what they order. You should also consider the expected income from each client when you do this type of thing.
As freelance work requires you to be paid freelancers, your monthly salary won't be as high as mine. So you might only get paid once every 6 months or so.
You need to determine what kind or income you want before you decide how much of it you will need.
I recommend starting with $1k to $2k of gold, and then growing from there.
What's the advantage of a Gold IRA?
The benefits of a gold IRA are many. It is an investment vehicle that can diversify your portfolio. You have control over how much money goes into each account.
You also have the option to transfer funds from other retirement plans into a IRA. This will allow you to transition easily if it is your decision to retire early.
The best part? You don’t need to have any special skills to invest into gold IRAs. They are offered by most banks and brokerage companies. You don't have to worry about penalties or fees when withdrawing money.
There are also drawbacks. The volatility of gold has been a hallmark of its history. It is important to understand why you are investing in gold. Are you looking for safety or growth? Is it for security or long-term planning? Only after you have this information will you make an informed decision.
If you plan on keeping your gold IRA alive for a while, you may want to consider purchasing more than 1 ounce of pure gold. You won't need to buy more than one ounce of gold to cover all your needs. Depending upon what you plan to do, you could need several ounces.
You don't need to have a lot of gold if you are selling it. You can even manage with one ounce. But you won't be able to buy anything else with those funds.
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)