Financial watchdog group Better Markets has called on the U.S. Securities and Exchange Commission (SEC) to reject spot bitcoin exchange-traded funds (ETFs), warning that they will cause significant harm to investors. The organization features a testimonial from U.S. Senator Elizabeth Warren on its website. Its president, who reportedly has a close relationship with SEC Chairman Gary Gensler, has cautioned the securities regulator against facilitating the potential financial devastation that could follow.
Better Markets' Supplemental Comment Letter to SEC
Better Markets, a non-profit, non-partisan organization based in Washington, D.C., filed a supplemental comment letter with the SEC on Friday. The letter outlined the reasons why the SEC should reject applications for spot bitcoin exchange-traded products (ETPs), including bitcoin ETFs. The letter specifically mentioned proposals from Blackrock, Vaneck, Ark Invest, Invesco, and Wisdomtree.
"The SEC must follow the law and reject spot bitcoin ETPs, which will cause significant harm to investors," wrote Better Markets. Dennis Kelleher, the organization's co-founder, president, and CEO, issued a statement expressing concern:
"The approval of spot bitcoin ETPs would be a historic mistake that would likely result in significant harm to investors. The rampant fraud and manipulation in the bitcoin market mean that approving these products would expose millions of American investors and retirees to the very risks that the SEC is designed to prevent."
Kelleher further warned that the SEC should not enable the potential financial devastation that could occur if the cryptocurrency industry is allowed to create and widely distribute a financial product that is essentially a worthless gambling chip. He stated that denying the proposed rule changes is necessary under the law.
Connections to U.S. Senator Elizabeth Warren and SEC Chairman Gary Gensler
Several individuals on social media quickly pointed out the connection between Better Markets, U.S. Senator Elizabeth Warren (D-MA), who has expressed skepticism towards cryptocurrencies, and SEC Chairman Gary Gensler.
Warren is prominently featured on the Better Markets website as one of its top testimonials. In her testimonial, she commends Dennis Kelleher and his team at Better Markets for advocating financial reform to protect the U.S. economy from future financial crashes.
In a detailed post on social media platform X, Fox Business journalist Eleanor Terrett highlighted the close relationship between SEC Chairman Gary Gensler and Better Markets CEO Dennis Kelleher. Terrett noted that they served together on President Biden's transition team and that Kelleher has been openly critical of cryptocurrencies. He has stated that crypto serves no legitimate or socially useful purpose and is a fraud on the public.
While some members of the crypto community may find Better Markets' arguments unconvincing, others are concerned that Gensler may be inclined to reject spot bitcoin ETF applications.
What are your thoughts on Better Markets' efforts to persuade the SEC to reject spot bitcoin ETF applications? Share your opinions in the comments below.
Frequently Asked Questions
What precious metals could you invest in to retire?
Knowing what you have saved so far and where you plan to save money in the future is the first step towards retirement planning. Take a look at everything you own to determine how much you have left. 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. You can then add up all these items to determine the amount of investment you have.
If you are under 59 1/2 you should consider opening a Roth IRA Account. A Roth IRA is not able to allow contributions to be deducted from your taxable earnings, but a traditional IRA can. However, you won't be able to take tax deductions for future earnings.
If you decide you need more money, you will likely need to open another investment account. Begin with a regular brokerage.
Does a gold IRA earn interest?
It all depends upon how much money you invest. If you have $100,000 to spare, then yes. If your assets are less than $100,000, it is no.
The amount you invest in an IRA affects its ability to earn interest.
You should consider opening a regular brokerage account instead if you put in more than $100,000 per year for retirement savings.
While you will probably earn more interest there as a result, you'll also be subject to riskier investments. If the stock market crashes, you don't want all your money to be lost.
An IRA is better if you have $100,000 to invest per year. At least until the market recovers.
What Is a Precious Metal IRA?
Precious metals can be a good investment for retirement accounts. Precious metals have been around since Biblical times and still hold their value today. Investing in precious metals such as gold, silver, and platinum is also a great way to diversify your portfolio and protect against inflation.
Many countries also permit citizens to store money in foreign currencies. You can buy Canada gold bars and keep them home. You can then sell the same gold bars to Canadian dollars when you return home to visit your family.
This is a quick and easy way of investing in precious metals. It is particularly useful for those who live outside North America.
- 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 IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
- Silver must be 99.9% pure • (forbes.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)
How to Determine if a Gold IRA is Right for You
Individual Retirement account (IRA), is the most widely used type of retirement plan. IRAs can be obtained through banks, financial advisors, mutual funds, employers and banks. The IRS allows individuals to contribute up $5,000 annually without worrying about tax consequences. This amount can be contributed to any IRA, regardless of your age. There are limitations on the amount of money that you can contribute to certain IRAs. For example, if your age is less than 591/2 years old, you can't contribute to a Roth IRA. Contributions must be made by those under 50 years old. Some people may also be eligible for matching contributions if they work for their employer.
There are two types primarily of IRAs. Traditional IRAs can be used to invest in stocks or bonds, as well other investments. Roth IRAs are only available for after-tax dollars. Roth IRA contributions aren't subject to tax on the amount they are received, but Roth IRA withdrawals will be. A combination of both accounts may be preferred by some people. Each type has its advantages and disadvantages. So what should you consider before deciding which type of IRA works best for you? Keep these three things in mind:
Traditional IRA Pros
- Companies have different options when it comes to contribution options
- Employer match possible
- It is possible to save more than $5.000 per person
- Tax-deferred growth up to withdrawal
- Income level may be a factor in some restrictions
- Maximum annual contribution is $5,500 ($6,500 for married couples filing jointly).
- The minimum investment is $1,000
- You must start receiving mandatory distributions after age 70 1/2
- You must be at the least five years of age to open an IRA
- Cannot transfer assets from IRAs
Roth IRA pros:
- Contributions do not attract taxes
- Earnings grow tax-free
- No minimum distributions
- There are only a few investment options available: stocks, bonds and mutual funds.
- There is no maximum contribution limit
- Transfer assets between IRAs is possible without restrictions
- To open an IRA, you must be 55 years old or older
You should be aware that not every company offers the same IRAs. For example, you might be able to choose between a Roth IRA (or a traditional one) from some companies. Some will let you combine them. There are different requirements for different types. A Roth IRA does not have a minimum investment requirement. Traditional IRAs require a minimum of $1,000.
The bottom line
It is important to decide whether you want taxes now or later when you choose an IRA. A traditional IRA is a good choice if you expect to retire within ten. Otherwise, a Roth IRA could be a better fit for you. However, it's always a good idea for you to talk with a professional regarding your retirement plans. Someone who understands the market will be able to recommend the best options.
By: Kevin Helms
Title: Financial Watchdog Urges SEC to Reject Spot Bitcoin ETFs, Citing Investor Harm
Sourced From: news.bitcoin.com/watchdog-group-warns-sec-reject-spot-bitcoin-etfs-or-face-financial-carnage/
Published Date: Sat, 06 Jan 2024 22:30:03 +0000