A Congressman's Accusations
U.S. Congressman Tom Emmer has criticized the Securities and Exchange Commission (SEC) for its intentional policy of providing less clarity to the cryptocurrency market. Emmer claims that the SEC's actions are in violation of the law, leading to repeated losses in court. He also suggests that SEC Chair Gary Gensler has a personal agenda that influences the agency's approach to regulation.
Emmer's Remarks at a Congressional Hearing
Congressman Tom Emmer, who serves as the House Majority Whip, expressed his dissatisfaction with the SEC's handling of the crypto industry during a hearing of the House Subcommittee on Digital Assets, Financial Technology, and Inclusion. The hearing, titled "Fostering Financial Innovation: How Agencies Can Leverage Technology to Shape the Future of Financial Services," provided Emmer with a platform to voice his concerns.
Emmer's Social Media Post
Following the hearing, Congressman Emmer took to social media to share his thoughts. He stated that it was now clear that the SEC intentionally avoids providing clarity to the marketplace. Emmer believes that this lack of clarity is detrimental to the capital markets and does not serve the best interests of investors.
The Hinman Speech and Token Clarity
Congressman Emmer referenced a speech given by William Hinman, the former director of the SEC's Division of Corporation Finance, in June 2018. In this speech, Hinman discussed the concept of tokens transitioning from securities to non-securities. Emmer highlighted Hinman's statement that ether is not a security.
Emmer also brought attention to a review conducted by Valerie A. Szczepanik, the director of the SEC's Strategic Hub for Innovation and Financial Technology (Finhub), regarding Hinman's speech. According to Emmer, Szczepanik believed that providing less detail in the speech was preferable, as the concept of tokens transitioning from securities to non-securities was new and would generate extensive discussion.
Accusations of Rulemaking Through Enforcement Actions
Congressman Emmer accused the SEC of rulemaking through enforcement actions. He questioned whether Finhub, under Chair Gensler's leadership, had issued any guidance clarifying how security laws apply to cryptocurrencies since Gensler took office. When Szczepanik failed to provide an answer, Emmer concluded that the lack of guidance indicated a rulemaking approach based on enforcement actions rather than clear regulations.
Emmer's Criticism and Efforts for Change
Emmer has been a vocal critic of the SEC and Chair Gensler, particularly regarding the agency's enforcement-centric approach to regulating the crypto industry. In June, he supported the SEC Stabilization Act, which aims to remove Gensler from his position as chair of the securities regulator. Emmer also successfully attached an amendment to a recent appropriations act that limits the SEC's authority to carry out enforcement actions against the crypto industry.
Additionally, Emmer has called on Congress to allocate resources to encourage more onshore crypto activity, citing its potential to enhance national security.
Seeking Public Opinion
Congressman Emmer invites public opinion on the SEC's actions and Chair Gensler's personal agenda in regulating the crypto industry. Share your thoughts in the comments section below.
Frequently Asked Questions
How much of your IRA should include precious metals?
Protect yourself against inflation by investing in precious metals like gold and silver. It's more than just an investment in retirement. It also prepares you for any economic downturn.
Gold and silver prices have increased significantly over the past few years, but they are still considered safe investments because they don't fluctuate as much as stocks do. There is always demand for these materials.
Predictable and stable prices for gold and silver are common. They increase with economic growth and decrease in recessions. This makes them great money-savers and long-term investments.
Ten percent should go into precious metals. If you wish to diversify further, this percentage could be higher.
Which type of IRA could be used for precious metals
A Individual Retirement Account (IRA), is an investment vehicle offered by most financial institutions and employers. You can contribute to an IRA account which grows tax-deferred and can be withdrawn at any time.
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 great investment because your earnings and contributions are tax-free. You can withdraw funds at any time. You can face penalties if you withdraw funds before the deadline.
After age 50, you can make additional contributions to an IRA without penalty. If you decide to withdraw your IRA from retirement, you will owe income taxes as well as a 10% federal penalty.
A 5% IRS penalty is applicable to withdrawals made before the age of 59 1/2. For withdrawals made between the age of 59 1/2 & 70 1/2, a 3.4% IRS penalty will apply.
Withdrawal amounts exceeding $10,000 per year are subject to a 6.2% IRS penalty.
What precious metals are permitted in an IRA
Gold is the most widely used precious metal for IRA account accounts. Also available as investments are bars and bullion gold coins.
Precious and precious metals are considered safe investments, as they don’t lose their value over the course of time. They are also a great way of diversifying your investment portfolio.
Precious Metals include palladium, silver, and platinum. These metals all share similar properties. However, each one has its unique uses.
Platinum is used to make jewelry, for example. The catalysts are made from palladium. To produce coins, silver can be used.
Think about how much you can afford to purchase your gold, before you make a decision on the precious metal. You may be better buying gold that is less expensive per ounce.
You also need to think about whether your investment is private. If you do, you should choose palladium.
Palladium has a higher value than gold. But it's also rarer. It is likely you will need to pay more.
Storage fees are another important consideration when choosing between silver and gold. Gold is stored by weight. For larger quantities of gold, you will be charged a higher storage fee.
Silver can be stored by volume. So you'll pay less for storing smaller amounts of silver.
All IRS rules concerning gold and silver should be followed if your precious metals are stored in an IRA. This includes keeping track and reporting transactions to the IRS.
Which type of IRA works best?
When selecting an IRA for yourself, the most important thing is to find one that meets your lifestyle and goals. Consider whether you are looking to maximize tax-deferred growth, minimize taxes and pay penalties later, avoid taxes, or both.
The Roth option may make sense if you are saving for retirement but don't have much other money invested. If you plan to continue working beyond age 59 1/2, and pay income taxes on any account withdrawals, the Roth option may be a good choice.
If you plan to retire early, the traditional IRA might make more sense because you'll likely owe taxes on the earnings of those funds. However, if your goal is to retire early, the traditional IRA might be more sensible. The Roth IRA allows you to withdraw some of your earnings or all without paying taxes.
- The maximum yearly contribution to an individual's IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
- You can only purchase gold bars of at least 99.5% purity. (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)
- Gold IRA, Add Some Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How to convert your IRA into a Gold IRA
Are you looking to transfer your retirement savings out of a traditional IRA in favor of a gold IRA. Well, this article will help you do just that. Here's how you can do it.
Rolling over is the process of transferring money from one type of IRA to another. Rolling over an account offers tax advantages. In addition, some people prefer investing in physical assets like precious metals.
There are two types of IRAs — Traditional IRAs and Roth IRAs. The difference between the two types is that Traditional IRAs let investors deduct taxes from earnings. Roth IRAs don’t allow this. This means that if you have $5,000 invested in a Traditional IRA, you will only be able take out $4850 after five years. The Roth IRA would allow you to keep every cent if you invested the same amount.
These are some things to consider if you plan to convert from a Traditional IRA to a Gold IRA.
You must first decide whether you want to transfer funds from one account to another or roll over your current balance to a new account. You will pay income tax on earnings above $10,000 when you transfer money. If you decide to roll over your IRA you will not be subject to income tax on these earnings until you turn 59 1/2.
Once you have made up your mind, it is time to open a brand new account. You may be asked for proof of identity (e.g., a Social Security or passport card, birth certificate, etc.). Next, you will need to complete paperwork proving your ownership of the IRA. Once you have completed all the forms, you will submit them to bank. They will verify your identity as well as give instructions on how to send wire transfers and checks.
The fun part is here. You'll deposit cash into your new account and wait for the IRS to approve your requests. After you receive approval, you'll get a letter stating that you can now begin withdrawing funds.
That's it! Now all you have to do is sit back and watch the money grow. Keep in mind that if your mind changes about converting your IRA to another type, you can simply close it and transfer any remaining balance to a new IRA.
By: Kevin Helms
Title: The SEC's Deliberate Lack of Clarity in Crypto Regulation, According to U.S. Lawmaker
Sourced From: news.bitcoin.com/us-lawmaker-blasts-sec-for-deliberately-obfuscating-crypto-regulations-questions-chair-genslers-personal-agenda/
Published Date: Thu, 07 Dec 2023 04:30:26 +0000