Coinbase Takes Legal Action against SEC's Decision
The U.S. Securities and Exchange Commission (SEC) has rejected cryptocurrency exchange Coinbase's petition for regulatory clarity in the crypto industry. SEC Chairman Gary Gensler backs his agency's decision to deny Coinbase's petition. In response, Coinbase has pursued legal action against the securities regulator to challenge this decision.
Coinbase Challenging SEC's Decision in Court
The U.S. Securities and Exchange Commission (SEC) has denied Coinbase Global's Petition for Rulemaking. The crypto exchange filed the petition in July last year, seeking regulatory clarity, including "potential rules to identify which digital assets are securities." With no response from the SEC for 18 months, the crypto exchange escalated the matter to court, prompting the agency to respond with the denial on Friday.
SEC Chair Gary Gensler issued a statement regarding the denial:
"I was pleased to support the Commission's decision for three reasons. First, existing laws and regulations apply to the crypto securities markets. Second, the SEC addresses the crypto securities markets through rulemaking as well. Third, it is important to maintain Commission discretion in setting its own rulemaking priorities," Gensler detailed.
Coinbase's chief legal officer, Paul Grewal, commented on X: "Today the SEC denied Coinbase's petition for rules for crypto. After 18 months of silence, we went to court to get the response the law requires. With appreciation for the Third Circuit, later today we'll again seek its help by challenging the SEC's abdication of its duty."
In a follow-up post, Grewal revealed:
Promise made, promise kept: we are now on file with Third Circuit to challenge the SEC's arbitrary and capricious denial of our petition for crypto rulemaking. We again appreciate the court's consideration.
The CEO of Coinbase, Brian Armstrong, wrote on X: "We went to court to challenge the SEC's refusal to create clear rules for the industry — and it worked (a court compelled them to respond)." The executive added: "Now that they've formally responded (with a no!) we can challenge their response in court, which helps us get one step closer to regulatory clarity. The question is why doesn't the SEC want to clarify outstanding regulatory questions for the crypto industry?"
What do you think about the SEC denying Coinbase's petition seeking regulatory clarity for the crypto industry? Let us know in the comments section below.
Frequently Asked Questions
Are gold and silver IRAs a good idea?
This could be a great opportunity for those who want to easily invest in both gold or silver simultaneously. There are other options as well. We are happy to answer any questions you may have about these types of investments. We're always happy to help!
What precious metals do you have that you can invest in for your retirement?
It is important to know what you have already saved and where money you are saving for retirement. You can start by making a list of all your assets. This should include any savings accounts, stocks, bonds, mutual funds, certificates of deposit (CDs), life insurance policies, annuities, 401(k) plans, real estate investments, and other assets such as precious metals. To determine how much money is available to invest, add all these items.
If you are younger than 59 1/2, you might want to open a Roth IRA account. Traditional IRAs allow you to deduct contributions out of your taxable income. Roth IRAs don't. 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 broker account.
Does a gold IRA make money?
Yes, but it's not as simple as you think. It all depends upon how much risk you are willing and able to take. A $10,000 investment per year for 20 years could lead to $1 million by retirement age. However, if all your eggs are in one basket, then you will lose everything.
You need to diversify your investments. Gold does well when there is inflation. You want to invest in an asset class that rises along with inflation. Stocks are able to do this because they rise as companies make more profit. Bonds are also able to do this. They pay interest each year. They are great in times of economic growth.
But what happens if there's no inflation? In times of deflation, stocks are more valuable than bonds. This is why investors should avoid putting all their savings into one investment, such as a bond or stock mutual fund.
They should instead invest in a combination of different types of funds. For example, they could invest in both stocks and bonds. Or they could invest in both cash and bonds.
By doing so, they are exposed to both the positive and negative sides of the coin. They can see both the inflation and the deflation sides of the coin. They will still see a return in time.
How to Open a Precious Metal IRA
The best way to open an IRA for precious metals is by opening a self-directed Roth Individual Retirement Account (IRA).
This account is better compared to other types because you don’t need to pay any taxes until you withdraw the investments.
It is attractive for people who want to save money, but need a tax break.
You don't have to invest in silver or gold. You can put your money in almost any item that meets the IRS guidelines.
Many people think only of silver and gold when they hear the word “precious metallic” but there are other types.
Examples include platinum, palladium and rhodium.
There are many ways that you can invest precious metals. There are two main options: buying bullion bars and coins, and purchasing 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 generic term that refers only to physical ounces in gold or silver.
You get actual bullion bars and coins when you purchase bullion coins.
While you may not immediately see any change after buying bullion coins and bars in a store, there will be some long-term benefits.
For example, you'll get a piece of history in a tangible form. Each coin or bar has its own story.
When you look at face value of the coin, you'll often find that it's worth far less than its nominal value. The American Eagle Silver Coin cost $1.00 an ounce in 1986 when it was first introduced. Today, however, the price of an American eagle is closer to $40.00 per ounce.
Bullion has had a tremendous increase in its value since its introduction. This is why many investors choose bullion bars and bullion coin over futures.
Mining Companies
Investing in shares of mining companies is another great option for those looking to buy precious metals. You're investing in the company’s ability to produce precious metals.
You will be paid dividends that are based on the company’s profits. These dividends will then be paid out to shareholders.
In addition, you will benefit from the growth potential of the company. As the demand for the product grows, the company's share price should increase.
You should diversify because these stocks have a tendency to fluctuate in their prices. This allows you to spread your risk among 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 dramatically, your ownership share could be worthless.
The Bottom Line
Precious metals such silver and gold provide an economic refuge from uncertainty.
However, both gold and silver are subject to wild swings in price. You might be interested in long-term investments in precious metals. Consider opening a precious metals IRA with a reputable company.
By doing this, you can reap the tax benefits and still have physical assets.
Statistics
- SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)
- The maximum yearly contribution to an individual's IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
- Silver must be 99.9% pure • (forbes.com)
- 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)
External Links
takemetothesite.com
regalassets.com
wsj.com
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
How to get started buying silver with an IRA
How to buy silver with an IRA – Direct ownership of physical bullion is the best way to invest. Silver coins and bars are the most popular form of investment because they offer diversification, liquidity, and convenience.However, many prefer owning physical bullion over paper certificates or electronic currency.
There are many options to buy precious metals like silver and gold. You can buy them directly from their producers such as refiners and mining companies. You can also buy bullion products from dealers, but this will not save you the trouble of dealing with producers directly.
This article will help you to start investing silver with your IRA.
- Investing in Gold & Silver through Direct Ownership – The best way to purchase precious metals is to directly go to the source. This involves getting the bullion and having it delivered to your doorstep. 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. Many storage facilities provide insurance coverage against fire, theft, and 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.
- Online Precious Metals Purchase – You can buy bullion online if you want to avoid having precious metals in heavy boxes. Bullion dealers offer bullion in a variety of forms, including bars and coins. You can find coins in many sizes, shapes, or designs. Coins are generally lighter than bars and easier to transport. Bars come in different weights and sizes. Some bars are heavy and weigh hundreds of pounds while others only weigh a few grams. You should consider the purpose of the bar before you decide on which one to get. If you plan on giving it as gifts, you might choose something smaller. However, if it's something you intend to use as a gift, it might be a smaller model. If you wish to add it to a collection and proudly display it, it may be worth spending fewer dollars.
- Buying Precious metal from Dealers-A third option is buying bullion through a dealer. Most dealers only specialize in one type of market, either silver or gold. Some dealers specialize in certain types of bullion, such as rounds or minted coins. Some specialize in particular regions. Others specialize in bulk sales. You'll find them all to be competitive in price and offer convenient payment methods.
- Buy Precious Metallics from Retirement Accounts. While technically not an “investment”, it's possible to invest in retirement accounts to gain exposure. You must make investments in precious metals via a qualified retirement account to be eligible for Section 219 tax benefits. These accounts can be IRAs, 401 (k)s or 403 (3(b) plans). Since these accounts are set up specifically to help you save for retirement, they often offer higher returns than many other investment vehicles. Most accounts allow you the ability to diversify between different metals. The problem? There are limitations to retirement account investments. These accounts are only available to employees of employers who sponsor them.
—————————————————————————————————————————————————————————————-
Based on [POSTTITLE]
by [POSTAUTHOR]
