Senator Elizabeth Warren Criticizes SEC’s Approval of Bitcoin ETFs

Senator Elizabeth Warren's Criticism

U.S. Senator Elizabeth Warren has strongly criticized the U.S. Securities and Exchange Commission (SEC) for approving spot bitcoin exchange-traded funds (ETFs). According to Warren, the SEC is both "wrong on the law and wrong on the policy" regarding their decision on bitcoin ETFs.

Immediate Criticism of SEC's Approval

Warren's criticism comes in response to the recent approval of 11 spot bitcoin ETFs by the SEC. As a vocal skeptic of bitcoin and other cryptocurrencies, the senator voiced her disagreement on social media, stating that the SEC's decision is misguided.

Importance of Anti-Money Laundering Rules

Warren emphasized the need for cryptocurrencies to adhere to basic anti-money laundering rules, especially if they are allowed to become further integrated into the financial system. She believes that stronger regulations are necessary to prevent money laundering and illicit activities within the crypto space.

Response to Community Notes

Warren's tweet received several responses from the community, with some notes stating that there are already robust laws in place to prevent crypto money laundering. They mentioned that U.S. agencies such as FinCEN, SEC, and CFTC, along with state regulations like New York's Bitlicense, contribute to anti-money laundering efforts.

Another note mentioned that the SEC's decision was influenced by new circumstances brought up in the Grayscale Investments, LLC v. SEC case, as acknowledged by SEC Chair Gary Gensler.

Warren's Stance on Cryptocurrency

Senator Warren has been a prominent critic of cryptocurrency. Last year, she joined over 100 legislators in raising concerns about Hamas evading U.S. sanctions and using crypto assets for financial transactions. In an effort to enhance regulatory compliance, Warren introduced the Digital Asset Anti-Money Laundering Act, which aims to address loopholes in current laws and bring cryptocurrency companies into alignment with anti-money laundering and countering the financing of terrorism frameworks.

However, Warren's bill has been viewed by some as a crypto ban, leading the Chamber of Digital Commerce to create a petition against it.

Different Views on Bitcoin ETFs

Interestingly, Senator Warren finds herself on the opposite side of the spot bitcoin ETF debate compared to JPMorgan CEO Jamie Dimon. While Dimon has maintained that bitcoin has no value and is primarily used for illicit activities, JPMorgan is serving as a lead authorized participant for Blackrock's spot bitcoin ETF.

Share Your Thoughts

What are your thoughts on Senator Elizabeth Warren's criticism of the approval of spot bitcoin ETFs? Let us know in the comments section below.

Frequently Asked Questions

Can a gold IRA earn any interest?

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.

How much money you place in an IRA will determine how it earns interest.

If your annual retirement savings contributions exceed $100,000, you might want to open a brokerage account.

Although you'll likely earn higher interest, there are greater risks. If the stock market crashes, you don't want all your money to be lost.

However, if you only put in $100,000 per annum, you'll probably be better off with an IRA. You can do this until the market grows again.

Can you make money from a gold IRA

You must first understand the market and then know which products are available to make money.

Trading is not a good idea if you don’t know what you need.

Also, you should find the broker that provides the best service possible for your account type.

There are many accounts available, including Roth IRAs and standard IRAs.

A rollover is also an option for those who already own stocks and bonds.

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. You can contact us at any time with questions about these types investments. We're always happy to help!

How much are gold IRA fees?

An individual retirement account's average annual fee (IRA) costs $1,000. There are many types of IRAs available, including traditional, Roth, SEP and SIMPLE IRAs. Each type of IRA has its own rules and requirements. You may be required to pay taxes on earnings earned from investments that aren't tax-deferred. You must also consider how long you want to hold onto the money. If you plan to keep your money longer, you can save more money by opening a Traditional IRA instead of a Roth IRA.

A traditional IRA lets you contribute up to $5,500 each year ($6,500 if your age is 50+). A Roth IRA gives you the ability to contribute unlimited amounts per 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.

Is it possible to take physical ownership of gold from my IRA

Many people want to know if gold can be physically owned in an IRA. This is a legitimate question since there is no legal way.

But if you carefully examine the law, there's nothing stopping you from owning gold in your IRA.

Most people don’t realize just how much they could save by putting your gold in an IRA, rather than keeping it at home.

It's easy for gold coins to be thrown away, but it's much more difficult to keep them in an IRA. If you decide that you want to keep your gold at home, you'll be responsible for two tax payments. One for the IRS, and one for your state.

You can also lose your gold and have to pay twice the taxes. So why would you choose to keep it in your home?

Some might argue that gold should be safe at home. However, to guard yourself against theft, it is worth considering storing your gold in a more secure location.

If you're planning on visiting frequently, it is best to keep your gold safe at home. If your gold is left unattended, thieves could easily steal it when you're away from home.

An insured vault is a better choice for gold storage. Then, your gold will be protected from fire, flood, earthquake, and robbery.

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An IRA is a way to avoid paying taxes on gold. With an IRA, you won't have to pay income tax even though you earn interest on your gold.

You don't have to pay capital gains taxes on gold. This means that you can cash out the entire value of your investment at any time you like.

Because IRAs have federal regulation, it won't be difficult to transfer your gold to another bank if there is a move.

Bottom line: You can have gold in an IRA. Fear of losing it is the only thing that will hold you back.

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)
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)
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)

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How To

How to Decide if a Gold IRA Is Right for You

Individual Retirement Account (IRA) is the most popular type. Individual Retirement Accounts (IRAs) are available through financial planners, banks, mutual funds and employers. Individuals can contribute as much as $5,000 per year without any tax consequences. This amount is available to all IRAs, regardless of age. However, certain IRAs have limits on the amount you can deposit. A Roth IRA is only available to those who are at least 59 1/2. You must wait until your age 70 1/2 to make contributions if you are under 50. Some people may also be eligible for matching contributions if they work for their employer.

There are two types primarily of IRAs. Traditional IRAs allow you to invest in stocks, bonds and other investments. A Roth IRA allows you to only invest in after-tax dollars. Roth IRA contributions are not subject to tax when they are made, but Roth IRA withdrawals are. Some people may choose to use both. There are pros and cons to each type of IRA. So what should you consider before deciding which type of IRA works best for you? Keep these three things in mind:

Traditional IRA Pros

There are many options for contributing to your company.
Employer match possible
Save more than $5,000 per Person
Tax-deferred growth up to withdrawal
Limitations may apply based on income levels
Maximum annual contribution is $5,500 ($6,500 for married couples filing jointly).
Minimum investment is $1,000
After age 70 1/2, you must begin taking mandatory distributions
An IRA can only be opened by someone who is at least five years older than you.
Transfer assets between IRAs is not possible

Roth IRA Pros:

Contributions are exempt from taxes
Earnings increase tax-free
There are no minimum distribution requirements
Stocks, bonds, and mutual fund investments are the only options.
No maximum contribution limit
There are no restrictions for transferring assets between IRAs
You must be at least 55 to open an IRA

It is important to understand that not all companies offer the exact same IRAs when opening a new IRA. Some companies offer the option of a Roth IRA, while others provide a choice between a Roth IRA and a traditional IRA. Others will give you the option to combine them. It's also worth noting that different types of IRAs have different requirements. For example, a Roth IRA has no minimum investment requirement, whereas a traditional IRA requires a minimum investment of just $1,000.

The Bottom Line

The key factor in choosing an IRA account is whether you wish to pay taxes now, or later. If you're planning to retire in the next ten-years, a traditional IRA may be the best option. Otherwise, a Roth IRA could be a better fit for you. It doesn't matter what, it is a good idea consult a professional to discuss your retirement plans. A professional can help you determine the best option for your situation and keep track of what's going on in the market.

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By: Kevin Helms
Title: Senator Elizabeth Warren Criticizes SEC's Approval of Bitcoin ETFs
Sourced From: news.bitcoin.com/senator-elizabeth-warren-says-sec-is-wrong-for-approving-spot-bitcoin-etfs/
Published Date: Sat, 13 Jan 2024 00:30:55 +0000