Introduction
The U.S. Securities and Exchange Commission (SEC) made waves in the cryptocurrency community when its official social media account on X platform announced the approval of spot bitcoin exchange-traded funds (ETFs) on Tuesday. However, within minutes of the announcement, SEC Chairman Gary Gensler clarified that the post was unauthorized and that the agency's social media account had been compromised. This unexpected turn of events has led to speculations about an internal SEC error behind the premature bitcoin ETF announcement.
SEC's 'Unauthorized' Spot Bitcoin ETF Announcement
Amidst mounting anticipation for the approval of spot bitcoin ETFs, the SEC's official account on X platform declared on Tuesday that the regulator had given the green light for spot bitcoin ETFs to be traded on all registered national securities exchanges.
As news of the supposed approval spread like wildfire across social media and the crypto industry, SEC Chairman Gary Gensler swiftly intervened on X platform to clarify that the SEC's account had been compromised and that the post regarding spot bitcoin ETF approval was unauthorized. Gensler emphasized that the securities regulator had not approved any listing or trading of spot exchange-traded products.
Reactions to the Unauthorized Announcement
Following the release of the unauthorized announcement, X was flooded with comments questioning the SEC's ability to safeguard investors and accusing the regulator of market manipulation due to the false news. Bitcoin proponent Jameson Lopp, for instance, expressed his disappointment, stating, "It's a good thing we have the SEC keeping us safe from malicious actors in the markets. Darn shame they can't even keep a social media account secure… Will the SEC be investigating itself for allowing this market manipulation on their watch?"
On social media, some individuals suspect that someone within the SEC made an error by posting the announcement prematurely, suggesting that it was intended to be released on Wednesday. Anthony Scaramucci, founder of Skybridge Capital, voiced his opinion on X, saying, "I think Gensler is lying. I bet an employee screwed up and jumped the gun, and he is blaming it on X… Blaming the tweet, which was carefully worded and included a produced graphic, on a hacked account is a continuation of the amateurish and dishonest nature of the current SEC leadership regime." Gabor Gurbacs, head of digital assets strategy at Vaneck, also shared his doubts, questioning the plausibility of recovering a hacked social media account and responding to the incident within a matter of minutes.
Furthermore, Gurbacs raised the possibility of the incident being an inside job, suggesting that creating such an event could be a way to halt or delay the approval of a bitcoin ETF. Alternatively, he speculated that the message may have been published prematurely, causing the confusion.
The Future of Spot Bitcoin ETFs
Despite the social media mishap, the SEC is still expected to approve multiple spot bitcoin ETFs by Wednesday, which marks the deadline for a proposal by Cathie Wood's Ark Invest and 21shares. Ten applicants for spot bitcoin ETFs have already submitted their amended registration statements to the SEC. As a result, several asset managers anticipate commencing trading of their spot bitcoin ETFs on Thursday.
Conclusion
The unauthorized spot bitcoin ETF announcement by the SEC's compromised social media account has generated significant discussion and speculation. Whether it was a social media mishap or an internal error, the incident highlights the challenges faced by regulatory bodies in the ever-evolving landscape of cryptocurrencies. As the SEC works towards approving spot bitcoin ETFs, the industry eagerly awaits further developments.
What are your thoughts on the SEC's claim of a compromised social media account? Do you believe the announcement was accidental? Share your opinions in the comments section below.
Frequently Asked Questions
How does gold and silver IRA work?
You can invest in precious metals like gold and silver without having to pay taxes. They make a great investment choice for those looking to diversify.
If you are over 59 1/2, income tax is not due on the interest earned from these accounts. Any appreciation in the account's worth does not attract capital gains tax. However, there are limitations on how much money you can put into this type of account. Minimum amount allowed is $10,000 If you're under the age of 59 1/2, investing is not allowed. The maximum annual contribution allowed is $5,500
If you die before retirement, your beneficiaries may receive less than the full amount in your account. Your estate should contain sufficient assets to cover your account's remaining balance after paying any other expenses.
Some banks offer IRA options in gold and silver, while some require you to open a regular brokerage accounts through which you can purchase shares or certificates.
Which type or type of IRA would be best?
It is essential to find an IRA that matches your needs and lifestyle when you are choosing one. It is important to consider whether you want tax-deferred, maximized growth of your contributions, reduced taxes now and paid penalties later, or just avoid taxes.
The Roth option may make sense if you are saving for retirement but don't have much other money invested. It's also worth considering if your plan is to work after the age of 59 1/2.
If you plan on retiring early, the traditional IRA may be better because you'll likely owe any taxes on the earnings. The Roth IRA is a better option if you plan to continue working well beyond age 65. It allows you to withdraw any or all of your earnings and not pay taxes.
Can a gold IRA make you money?
Yes, but not as much. It depends on what level of risk you are willing take. You could have $1 million if you're willing to invest $10,000 each year for 20 years. However, if all your eggs are in one basket, then you will lose everything.
Diversifying your investments is essential. Inflation makes gold a good investment. You should invest in an asset that increases with inflation. Stocks do this well because they rise when companies increase profits. This is also true with bonds. They pay interest each year. They are great in times of economic growth.
What happens if there is no inflation? Stocks fall more and bonds lose value during deflationary times. This is why investors should not invest all of their savings in one investment, such a bond mutual fund or stock mutual fund.
Instead, they should invest in a mix of different funds. They could, for example, invest in stocks and bonds. Or, they could invest in both bonds and cash.
This gives them exposure to both sides. Inflation and depression. They will still experience a return with time.
What type of IRA are you using to buy precious metals stocks?
Employers and financial institutions often offer Individual Retirement Accounts (IRA) as an investment vehicle. An IRA lets you contribute money that will grow tax-deferred to the time it is withdrawn.
An IRA lets you save taxes and pay them off later. This means that you can deposit more money into your retirement plan than have to pay taxes on it tomorrow.
An IRA is a tax-free way to make contributions and earn income until you withdraw the funds. There are penalties for early withdrawal if you do.
After 50 you can still make contributions to your IRA. There is no penalty. If you choose to take withdrawals from your IRA during retirement, you'll owe income taxes and a 10% federal penalty.
A 5% IRS penalty is applicable to withdrawals made before the age of 59 1/2. Between the ages of 591/2 and 70 1/2, withdrawals are subject to a 3.4% IRS penal.
There is a 6.2% penalty for withdrawals over $10,000 per calendar year.
Statistics
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (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)
- Silver must be 99.9% pure • (forbes.com)
- 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)
External Links
en.wikipedia.org
forbes.com
kitco.com
investopedia.com
How To
Things to Remember: Best Precious Metals Ira, 2022
Precious Metals Ira, one of the most preferred investment options among investors, is one. This article will teach you what makes precious metals so attractive, and how to make informed decisions about investing in precious materials.
These assets are renowned for their long-term potential growth. Historical data shows that gold prices have experienced incredible returns. Gold prices have increased by almost $1900 per troy ounce in the past 200 year, from $20 an ounce to nearly $1900 over that time. The S&P 500 Index was only up by 50%.
During economic uncertainty, gold can also be considered a refuge. When the stock market suffers bad days, people tend to sell stocks and move into the safety of gold. As an inflation hedge, gold is also thought to be a good investment. Many economists believe there will always be inflation. Therefore, they see owning physical gold as a way to protect your savings from future price increases.
Before you buy any precious metal, such as silver, gold, palladium or platinum, there are some things you should consider. First, consider whether you would prefer to invest in bullion or coins. Bullion bars are usually bought in large quantities (like 100 ounces) and stored away until needed. The coins are smaller versions than bullion bars and can be used to purchase small quantities of bullion.
Second, consider where you want to store your precious materials. Some countries are safer then others. For example, you might consider storing precious metals overseas if your home country is the United States. If you are thinking of storing your precious metals in Switzerland, however, you might be wondering why.
Finally, decide whether you want investment in precious metals directly (or through precious metals exchange traded funds) (ETFs). ETFs are financial instruments that track the performance of different commodities, such as gold. These are a way to have exposure to precious metals but not necessarily own them.
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