Lawmakers Demand 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 account breach resulted in a false tweet announcing the approval of bitcoin exchange-traded funds (ETFs) on January 9. The SEC's official X account 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
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 and efficient markets, and facilitate capital formation. They highlighted the preliminary investigation conducted by X, which revealed that the SEC account did not have two-factor authentication enabled. An unidentified individual obtained control of a phone number associated with the SEC's account.
The lawmakers expressed their concern over this failure and stated that it is unacceptable for the SEC to not meet the same security standards required of private industry. They requested a briefing from the SEC to better understand how the breach occurred and how the commission plans to prevent such incidents in the future.
The lawmakers concluded the letter by asking for the briefing to take place no later than January 17, 2024.
X Confirms Compromise of SEC's Account
Following the incident, X confirmed that the SEC's account had been compromised. However, X's preliminary investigation found that the compromise was not due to any breach of X's systems. Instead, an unidentified individual gained control over a phone number associated with the @SECGov account through a third party. It was also revealed that the account did not have two-factor authentication enabled at the time of the breach.
X encouraged all users to enable two-factor authentication as an extra layer of security.
SEC's Response and Criticism from Lawmakers
The SEC issued a statement after the breach, stating that they would work with law enforcement and government partners to investigate the unauthorized access and any related misconduct.
Several lawmakers criticized the SEC and Chair Gensler following the incident. Senator J. D. Vance expressed his disappointment and demanded an explanation for such a colossal error from the agency responsible for regulating the world's capital markets. Senator Bill Hagerty called for accountability, comparing the situation to how the SEC would hold a public company responsible for a market-moving mistake. Senator Cynthia Lummis highlighted the potential manipulation of markets caused by fraudulent announcements and called for transparency regarding the incident.
Conclusion
The breach of the SEC's X account and the subsequent fake tweet about the approval of spot bitcoin ETFs have raised concerns among lawmakers. They are demanding answers and a briefing from the SEC to understand how the breach occurred and to ensure that such incidents are prevented in the future. The SEC has stated that it will investigate the matter and take appropriate action.
Frequently Asked Questions
How to Open a Precious Metal IRA
It is best to open an IRA with precious metals through a Roth Individual Retirement Account.
This account is better compared to other types because you don’t need to pay any taxes until you withdraw the investments.
This makes it attractive to those who want a tax break but still want to save some money.
You are not restricted to investing only in gold or silver. If it meets the IRS guidelines, you can invest in any asset that interests you.
Many people think only of silver and gold when they hear the word “precious metallic” but there are other types.
These include palladium, platinum, rhodium,osmium,iridium, andruthenium.
You have many options to invest in precious metals. These include purchasing bullion coins and bars, as well as shares in mining companies.
Bullion Coins or Bars
One of your easiest ways to get into precious metals is to purchase bullion coins. Bullion is a general term that describes physical ounces, or physical gold and silver.
When you buy bullion coins and bars, you receive actual pieces of the metal itself.
Although you may not be able to see any change immediately after purchasing bullion bars and coins at a shop, you will soon notice some positive effects.
You will receive a tangible piece if history, for example. Each coin or bar has its own story.
If you compare the nominal value to face value, you will often find that it is worth much less than its nominal. For example, the American Eagle Silver Coin was only $1.00 per ounce when it was introduced in 1986. However, today, an American Eagle Silver Coin is more than $40.00 per Ounce.
Bullion has seen a dramatic rise in value since its introduction. Many investors would rather buy bullion coins or bullion bars than futures contracts.
Mining Companies
A great way to get precious metals is by investing in shares in mining companies. You are investing in the ability of mining companies to produce gold or silver.
In return, you will receive dividends based on the company's profits. These dividends can then be used to pay out shareholders.
In addition, you will benefit from the growth potential of the company. The share prices of the company should rise as more people buy the product.
Because these stocks fluctuate in price, it's important to diversify your portfolio. This involves spreading your risk over multiple companies.
It is important to keep in mind that mining companies can lose their financial investments just as stock markets investors.
If gold prices drop significantly, your share of ownership could be worthless.
The bottom line
Precious metals, such as silver and gold, can be a refuge during economic uncertainty.
Both silver and gold are subject to extreme price swings. If you're looking to make a long-term, profitable investment in precious metallics, then consider opening a precious precious metals IRA Account with a reputable business.
You can enjoy tax benefits while still owning tangible assets.
What precious metals can you invest in for retirement?
Understanding what you have now saved and where you are currently saving money is the first step in retirement planning. Start by listing everything you have. This includes stocks, bonds and mutual funds, as well as certificates of deposit (CDs), life policies, annuities and 401(k), plans, real estate investments and other assets, such precious metals. Add all these items together to calculate how much money you have for investment.
If you are between 59 and 59 1/2 years, you might consider opening a Roth IRA. A Roth IRA is not able to allow contributions to be deducted from your taxable earnings, but a traditional IRA can. However, you will not be able take tax deductions on future earnings.
If you decide you need more money, you will likely need to open another investment account. Start with a regular brokerage.
What are the pros & cons of a Gold IRA?
The gold IRA is a great way to diversify your portfolio, but you don't have access the traditional banking services. It allows you invest in precious metals like platinum, silver, and gold without any taxes, until they're withdrawn.
However, if you withdraw money before the due date, you will be subject to ordinary income tax. But because these funds are held outside of the country, there is little chance of them being seized by creditors when you default on your loan.
A gold IRA could be the best option for you if your goal is to have gold that you can own without worrying about taxes.
Are precious metal IRAs a good investment?
The answer depends on how much you are willing to risk an IRA account losing value. These are good if you have $10,000 of cash and don't expect them grow quickly. These are not the best investments if there is a long-term plan for saving money (like gold) or if you want to invest more in assets that will rise in value over time. You may also have to pay fees, which can reduce your gains.
Statistics
- Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that 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)
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
- To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
External Links
wsj.com
investopedia.com
regalassets.com
en.wikipedia.org
How To
How to Buy Silver With Your IRA
How to purchase silver with your IRA – The best way of investing in silver and gold is to directly own physical bullion. Bars and silver coins are the most common form of investment. They offer liquidity, diversification, and convenience.
There are many options to buy precious metals like silver and gold. They can be purchased directly from the producers (mining companies or refiners). Or, if you don't want to deal with the hassle of dealing directly with a producer, you can buy them from a dealer who buys and sells bullion products.
This article will tell you how to start investing with your IRA in silver.
- Investing in Gold & Silver through Direct Ownership – The best way to purchase precious metals is to directly go to the source. This allows you to get the bullion directly and have it delivered directly to your home. While some investors prefer to keep their bullion inside their homes, others choose to store it in a storage facility that is insured and protected. Protect your precious metal by storing it correctly. Most storage facilities offer insurance coverage that protects against theft, fire, or damage. Even with insurance, your investments could be damaged by natural disasters or human error. The safe storage of precious metals at a bank or credit card union is always recommended.
- Buying Precious Metals Online – If you'd rather avoid carrying around heavy boxes of precious metal, then one alternative is to buy bullion online. Bullion dealers sell bullion online in many forms, including coins or bars. You can find coins in many sizes, shapes, or designs. Coins are generally more convenient to carry than bars. Bars come in a variety of sizes and weights. Bars can weigh hundreds of lbs, while others weigh only a few ounces. When choosing which bar to buy, it is important to consider what you will use it for. If you plan to use it as a gift, you might want to consider something smaller. You might spend more money if you plan to display it and add it to your collection.
- Buy Precious Metals from Dealers – Another option is to purchase bullion directly from a dealer. Most dealers only specialize in one type of market, either silver or gold. Some dealers specialize exclusively in certain types or bullion, like rounds or minted money. Others are specialists in specific regions. Others are specialists in bulk purchases. No matter what dealer you choose you will find that they offer great prices and flexible payment options.
- Buy Precious Metals Through Retirement Accounts. Although it is not considered an “investment”, investing in retirement accounts can provide exposure to precious metals. To qualify for tax benefits under Section 219 of the IRS Code, you must invest in precious metals through a qualified retirement account. These include IRAs as well 403(b), 401(k), and 403 (b) plans. These accounts are often set up to help you save more for retirement. They offer higher returns than most other investment vehicles. Many of these accounts let you diversify your holdings across multiple types of metals. But what's the downside? The drawback? These accounts can only be opened by employees who are sponsored by their employers.
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