SEC Prioritizes Crypto Enforcement
The U.S. Securities and Exchange Commission (SEC) experienced a significant surge in crypto-related enforcement actions in 2023, surpassing the previous year by over 50%, according to a recent report. The SEC considers cryptocurrency-related enforcement as one of its top priorities and has initiated 46 enforcement actions against various participants in the digital asset market.
Cornerstone Research, in their report titled "SEC Cryptocurrency Enforcement," highlighted the SEC's heightened focus on digital assets and the record-breaking number of enforcement actions taken in 2023. This number represents the highest level of enforcement activity since 2013, marking a substantial 53% increase from the previous year.
The report further reveals that the SEC initiated an unprecedented 20 actions in the first quarter of 2023 alone, setting a new record for the highest number of actions in a single quarter. Out of the total 46 enforcement actions, 26 were litigations in U.S. federal courts, while the remaining 20 were administrative proceedings. This signifies a significant increase in administrative proceedings compared to the previous year, with a slight uptick in litigations. The settlements reached resulted in the imposition of $281 million in monetary penalties by the SEC.
Of the enforcement actions conducted by the SEC in 2023, approximately 37% were related to initial coin offerings (ICOs), representing a decrease from the 47% reported in 2022. Among the 17 ICO-related actions, 82% involved allegations of fraud. Notably, the SEC initiated two administrative proceedings for the first time specifically related to non-fungible tokens (NFTs).
SEC Chair Gensler emphasized that enforcement is a tool rather than the ultimate goal, and the number of enforcement actions taken by the SEC in the crypto space has significantly increased over the past two years.
In 2023, the SEC brought charges against 124 individuals or entities in cryptocurrency enforcement actions, with individuals accounting for 54% and firms representing the remaining 46%. Notably, the percentage of enforcement actions solely targeting individuals decreased from 50% in the previous year to 39%.
What are your thoughts on the record-breaking number of SEC enforcement actions against individuals and firms in the crypto space? Share your opinions in the comments section below.
Frequently Asked Questions
Can the government take your gold
Your gold is yours, so the government cannot confiscate it. It is yours because you worked hard for it. It belongs to you. This rule may not apply to all cases. If you are convicted of fraud against the federal government, your gold can be forfeit. Your precious metals can also be lost if you owe tax to the IRS. However, even if taxes are not paid, gold is still your property.
Is it possible to hold a gold ETF within a Roth IRA
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
A traditional IRA allows contributions from both employee and employer. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.
An ESOP provides tax advantages because employees share ownership of company stock and profits the business generates. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.
An Individual Retirement Annuity (IRA) is also available. An IRA allows for you to make regular income payments during your life. Contributions to IRAs can be made without tax.
How much of your portfolio should be in precious metals?
First, let's define precious metals to answer the question. Precious metals refer to elements with a very high value relative other commodities. They are therefore very attractive for investment and trading. Gold is by far the most common precious metal traded today.
There are many other precious metals, such as silver and platinum. The price of gold tends to fluctuate but generally stays at a reasonably stable level during periods of economic turmoil. It is also relatively unaffected both by inflation and deflation.
In general, prices for precious metals tend increase with the overall marketplace. However, the prices of precious metals do not always move in sync with one another. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. Investors expect lower interest rate, making bonds less appealing investments.
Contrary to this, when the economy performs well, the opposite happens. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. They become less expensive and have a lower value because they are limited.
You must therefore diversify your investments in precious metals to reap the maximum profits. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
What are the advantages of a IRA with a gold component?
Many benefits come with a gold IRA. It's an investment vehicle that allows you to diversify your portfolio. You decide how much money you want to put into each account, and when you want it to be withdrawn.
You also have the option to roll over funds from other retirement accounts into a gold IRA. If you are planning to retire early, this makes it easy to transition.
The best part about gold IRAs? You don't have to be an expert. They're available at most banks and brokerage firms. Withdrawals can be made instantly without the need to pay fees or penalties.
There are, however, some drawbacks. Gold has historically been volatile. It's important to understand the reasons you're considering investing in gold. Is it for growth or safety? Are you trying to find safety or growth? Only by knowing the answer, you will be able to make an informed choice.
If you are planning to keep your Gold IRA indefinitely you will want to purchase more than one ounce. A single ounce isn't enough to cover all of your needs. Depending on the purpose of your gold, you might need more than one ounce.
You don't have to buy a lot of gold if your goal is to sell it. You can even get by with less than one ounce. However, you will not be able buy any other items with those funds.
What is a Precious Metal IRA?
A precious metal IRA allows for you to diversify your retirement savings in gold, silver, palladium and iridium. These metals are known as “precious” because they are rare and extremely valuable. These are good investments for your cash and will help you protect yourself from economic instability and inflation.
Bullion can be bought through many channels, including online retailers, large coins dealers, and some grocery shops.
With a precious metal IRA, you invest in bullion directly rather than purchasing shares of stock. This ensures that you will receive dividends each and every year.
Precious Metal IRAs don’t require paperwork nor have annual fees. Instead, you pay a small percentage tax on the gains. Plus, you can access your funds whenever you like.
Who is entitled to the gold in a IRA that holds gold?
The IRS considers gold owned by an individual to be “a type of money” and is subject taxation.
You must have at least $10,000 in gold and keep it for at most five years to qualify for this tax-free status.
Although gold can help to prevent inflation and price volatility, it's not sensible to have it if it's not going to be used.
If you plan to sell the gold one day, you will need to report its worth. This will affect how much capital gains tax you owe on cash you have invested.
It is a good idea to consult an accountant or financial planner to learn more about your options.
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Yahoo Finance – Barrick Gold Corporation Stock Price, News & Quote – Barrick Gold Corporation (GOLD).
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Do you want to keep your IRA gold at home? It's not exactly legal – WSJ