SEC Is Anything But Infallible
Ripple's chief legal officer, Stuart Alderoty, recently expressed his dissatisfaction with the U.S. Securities and Exchange Commission (SEC) on social media. Citing an article from the Wall Street Journal that highlighted the Supreme Court's repeated rulings against the SEC, Alderoty emphasized that the regulator is far from infallible. He described the agency as "bloated, broken, and beleaguered" and advised investors not to be intimidated when dealing with the securities watchdog.
The SEC's Recent Legal Losses
Alderoty's comments come after the SEC faced a series of legal defeats against cryptocurrency firms. Ripple Labs, in particular, celebrated three consecutive wins against the SEC, including a ruling on July 13 that declared XRP to be not a security. The SEC's attempt to appeal the decision was denied on October 3, and the agency subsequently dropped its lawsuit against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen.
The SEC also suffered a loss in a lawsuit involving Grayscale Investments and the conversion of its 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 August that the SEC's denial of Grayscale's proposal was arbitrary and capricious. The court ordered the SEC to reassess Grayscale's bitcoin ETF conversion application as a result.
Criticism of SEC Chairman Gary Gensler
Many individuals have criticized SEC Chairman Gary Gensler for his enforcement-centric approach to regulating the crypto industry. Gensler has repeatedly characterized the field as being filled with hucksters, fraudsters, and non-compliant entities. This month, the SEC filed a second lawsuit against Kraken, a cryptocurrency exchange, after the exchange settled a previous lawsuit with the regulator for $30 million in February. In fact, there is currently a bill in Congress that aims to remove Gensler as the chair of the SEC.
Standing Strong Against the SEC
Ripple's chief legal officer's bold statement about the SEC resonated with lawyer John Deaton, who shared his own experience of suing the SEC. Deaton highlighted that the SEC's ability to intimidate individuals is largely due to its access to unlimited resources funded by taxpayers. However, he encourages people to stand up against government oppression and intrusion, as it is the American way to fight back.
In conclusion, Ripple's chief legal officer's criticism of the SEC reflects growing dissatisfaction with the regulator's actions within the crypto industry. Despite the SEC's recent legal losses, its enforcement-centric approach and Chairman Gensler's controversial stance continue to draw criticism. It remains to be seen how these issues will shape the future of crypto regulation in the United States.
What are your thoughts on Ripple's chief legal officer's remarks? Share your opinions in the comments section below.
Frequently Asked Questions
How Does Gold Perform as an Investment?
Gold's price fluctuates depending on the supply and demand. Interest rates are also a factor.
Gold prices are volatile due to their limited supply. In addition, there is a risk associated with owning physical gold because you have to store it somewhere.
Can I buy gold with my self-directed IRA?
However, gold can only be purchased with your self-directed IRA. To do so, you must first open a brokerage account at TD Ameritrade. Transfer funds from an existing retirement account are also possible.
The IRS allows individuals to contribute up to $5,500 annually ($6,500 if married and filing jointly) to a traditional IRA. Individuals can contribute up to $1,000 annually ($2,000 if married and filing jointly) directly to a Roth IRA.
You should consider buying physical gold bullion if you decide to invest in it. Futures contracts are financial instruments that are based on gold's price. You can speculate on future prices, but not own the metal. Physical bullion, however, is real gold and silver bars that you can hold in your hand.
What are the pros & con's of a golden IRA?
An Individual Retirement Plan (IRA) has a major advantage over regular savings accounts. It doesn't tax any interest earned. An IRA is a good choice for those who want a way to save some money but don’t want the tax. This type of investment has its downsides.
You could lose all of your accumulated money if you take out too much from your IRA. You may also be prohibited by the IRS from making withdrawals from an IRA after you turn 59 1/2. If you do decide to withdraw funds from your IRA, you'll likely need to pay a penalty fee.
You will also need to pay fees for managing your IRA. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management charges ranging anywhere from $10 to $50.
If you prefer your money to be kept out of a bank, then you will need insurance. Many insurers require that you own at least one ounce of gold before you can make a claim. You might be required to buy insurance that covers losses up to $500,000.
If you choose to go with a gold IRA, you'll need to determine how much gold you want to use. You may be limited in the amount of gold you can have by some providers. Others let you choose your weight.
You will also have to decide whether to purchase futures or physical gold. Gold futures contracts are more expensive than physical gold. Futures contracts allow you to buy gold with more flexibility. You can set up futures contracts with a fixed expiration date.
You will also have to decide which type of insurance coverage is best for you. Standard policies don't cover theft protection, loss due to fire, flood or earthquake. It does provide coverage for damage from natural disasters, however. You might consider purchasing additional coverage if your area is at high risk.
In addition to insurance, you'll need to consider the cost of storing your gold. Storage costs are not covered by insurance. In addition, most banks charge around $25-$40 per month for safekeeping.
If you decide to open a gold IRA, you must first contact 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 hold them as long as you request.
After you have decided on the type of IRA that best suits you, you will need to complete paperwork detailing your goals. Your plan should include information about the investments you want to make, such as stocks, bonds, mutual funds, or real estate. You should also specify how much you want to invest each month.
After filling out the forms, you'll need to send them to your chosen provider along with a check for a small deposit. The company will review your application and send you a confirmation letter.
When opening a gold IRA, you should consider using a financial planner. Financial planners are experts in investing and will help you decide which type of IRA works best for your situation. They can help you find cheaper insurance options to lower your costs.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
- 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)
- 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)
- (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)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement accounts
finance.yahoo.com
bbb.org
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
Tips for Investing in Gold
Investing in Gold has become a very popular investment strategy. There are many advantages to investing in Gold. There are many ways you can invest in gold. Some people buy physical gold coins, while others prefer investing in gold ETFs (Exchange Traded Funds).
You should consider some things before you decide to purchase any type of gold.
- First, make sure you check if your country allows you own gold. If the answer is yes, you can go ahead. Otherwise, you can look into buying gold from abroad.
- Secondly, you should know what kind of gold coin you want. You have the option of choosing yellow, white, or rose gold.
- You should also consider the price of gold. Start small and move up. One thing that you should never forget when purchasing gold is to diversify your portfolio. Diversifying your portfolio should be a priority, including stocks, bonds and real estate.
- Lastly, you should never forget that gold prices change frequently. Therefore, you have to be aware of current trends.
—————————————————————————————————————————————————————————————-
Based on [POSTTITLE]
by [POSTAUTHOR]
