Lawmaker Criticizes SEC's Approach to Crypto Industry
A U.S. lawmaker has criticized the Securities and Exchange Commission (SEC) for its deliberate policy preference to provide less clarity to the crypto market. Congressman Tom Emmer accused the SEC of not adhering to the law and suggested that this was the reason behind the SEC's frequent losses in court. Emmer made these comments during a hearing of the House Subcommittee on Digital Assets, Financial Technology and Inclusion.
SEC's Policy Preference for Less Clarity
Emmer expressed his frustration with the SEC's approach to regulating the crypto industry, stating that the SEC intentionally chooses to provide less clarity instead of more. He described this as a complete disservice to the capital markets. Emmer's comments came after a speech given by William Hinman, the former director of the Division of Corporation Finance at the SEC, in which he discussed the concept of tokens morphing from securities to non-securities.
SEC's Lack of Clarity
Emmer highlighted a review by Valerie A. Szczepanik, the director of the SEC's Strategic Hub for Innovation and Financial Technology, which suggested that providing less detail in speeches would generate more discussions. Emmer questioned whether the current SEC chair, Gary Gensler, shares this view. However, Szczepanik declined to comment on Gensler's position.
Rulemaking Through Enforcement Actions
Emmer criticized the lack of guidance issued by the SEC's Finhub under Gensler's leadership. He accused the SEC of engaging in rulemaking through enforcement actions, rather than providing clear guidance on how security laws apply to cryptocurrencies. Emmer also questioned whether Hinman's previous statement that ether is not a security still reflects the SEC's current view, but Szczepanik declined to answer.
Emmer's Criticism of SEC and Chair Gensler
Congressman Emmer has been a vocal critic of the SEC's enforcement-centric approach to regulating the crypto industry. He has supported legislation seeking to remove Gensler as the chair of the securities regulator and has successfully introduced an amendment to limit the SEC's enforcement actions against the crypto industry. Emmer has also called for increased resources to bring more crypto activity onshore to strengthen national security.
What are your thoughts on Congressman Tom Emmer's criticism of the SEC? Do you believe SEC Chair Gary Gensler has a personal agenda in regulating the crypto industry? Share your opinions in the comments below.
Frequently Asked Questions
What is a Precious Metal IRA and How Can You Benefit From It?
Precious metals can be a good investment for retirement accounts. Precious metals have been around since Biblical times and still hold their value today. You can diversify your portfolio by investing in precious metals, such as gold, platinum, and silver.
Certain countries even allow their citizens to save money in foreign currencies. You can purchase gold bars from Canada and keep them at your home. You can then sell the same gold bars to Canadian dollars when you return home to visit your family.
This is an easy way to invest precious metals. It's particularly helpful for people who don't reside in North America.
How much are gold IRA fees?
An average annual fee for an individual retirement plan (IRA) is $1,000. There are many types to choose from, such as Roth, SEP, SIMPLE, traditional and Roth IRAs. Each type has its own set requirements and rules. If your investments are not tax-deferred, you might have to pay taxes on the earnings. Also, consider how long the money will be kept. If you plan to keep your money longer, you can save more money by opening a Traditional IRA instead of a Roth IRA.
You can contribute up to $5500 per year to a traditional IRA (or $6500 if you are 50 or older). The Roth IRA allows unlimited contributions each year. The difference between them? With a traditional IRA, the money can be withdrawn at your retirement without tax. A Roth IRA will entail taxes for any withdrawals.
What is the interest rate on a gold IRA?
It depends on how much money you put into it if you have $100,000, then yes. If your net worth is less than 100,000, no.
The amount of money that you put into an IRA is what determines whether it earns or not interest.
If you have more than $100,000 in retirement savings each year, you might consider opening a regular brokerage accounts.
While you will probably earn more interest there as a result, you'll also be subject to riskier investments. You don't want your entire portfolio to go bankrupt if the stock markets crash.
However, if you only put in $100,000 per annum, you'll probably be better off with an IRA. At least until the market recovers.
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)
- 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)
- 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)
- 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
wsj.com
regalassets.com
en.wikipedia.org
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
How to Buy Gold For Your Gold IRA
The term precious metal refers to gold, silver, palladium and rhodium. It refers only to elements with atomic number 79-110 (excluding helium). These elements are considered valuable because they are rare and beautiful. Silver and gold are the most well-known precious metals. Precious metallics are frequently used as jewelry, money and industrial goods.
Gold prices fluctuate daily because of supply and demande. Investors are looking for safe havens away from unstable countries and precious metals has seen a large demand over the past decade. The increased demand has led to a significant rise in prices. However, some are hesitant to invest in precious metals because of the rising costs of production.
Gold is a solid investment as it is both rare and long-lasting. Like many investments, gold doesn't lose value. Plus, you can buy and sell gold without paying taxes on your profits. There are two ways to invest in gold. There are two ways to invest in gold: buy gold bars and coins; or, you can invest directly in gold futures.
Physical gold coins and bars provide immediate liquidity. They are easy and convenient to trade or store. They don't provide much protection against inflation. For protection against rising prices, gold bullion is a good option. Bullion, also known as physical gold and available in different sizes, is physical. Bullion comes in a variety of sizes, including kilo bars and one-ounce pieces. Bullion is usually stored in vaults protected from theft and fire.
If you prefer owning shares of gold rather than holding actual gold, you should consider buying gold futures. Futures let investors speculate on the future price of gold. You can purchase gold futures to get exposure to the gold price, but not the actual commodity.
For example, if I wanted to speculate on whether the price of gold would go up or down, I could purchase a gold contract. When the contract expires, my position will either be “long” or “short.” A long contract means I believe the gold price will rise, so I am willing to hand over money now in return for the promise of more money when the contract expires. A short contract, on the other hand, means I believe the price of gold is going to drop. I'm happy to accept the money right now in exchange of the promise that I'll make more money later.
When the contract expires, I'll receive the amount of gold specified in the contract plus interest. This way I have exposure to the gold's price without having to actually hold it.
Precious Metals are great investments as they are difficult to counterfeit. Precious metals can't be counterfeited like paper currency. However, new bills can be printed to make them look more authentic. This is why precious metals have always held their value well over time.
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