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Why the SEC keeps rejecting Bitcoin ETF applications
There have been several applications made to the SEC since 2013 requesting a rule change that would allow the launch of a Bitcoin ETF in the US. Many of which have been filed by reputable Wall Street firms. Most of what the SEC objects to is not the companies making the applications but rather the market in general.
The Bitcoin market is growing with barely a decade to its age. So far, it is valued at a poultry US$1 trillion compared to other more established markets such as gold, oil, treasury bonds, or company equity. These traditional financial instruments also have a history to them from which the SEC has drawn very effective policies to protect investors.
Bitcoin, on the other hand, is a new kind of asset utilizing an unproven technology. Most investors in the blockchain space are struggling to understand it, and so are the regulators.
The Bitcoin ETF applicants’ biggest challenge in getting the green light from the SEC is providing enough proof to show that the Bitcoin market has matured enough to be considered immune from market manipulations.
Given that a majority of the trading volume is reported from exchanges outside the jurisdiction of the SEC, this has become the most significant hindrance. If you cannot oversee the institutions reporting on the trading activity, you cannot effectively monitor open price discovery of the asset.
Additionally, there have been several incidents of scams and fraud cases within the cryptocurrency industry, confirming the fears that the SEC has highlighted.
Other concerns that the SEC has pointed out include the cryptocurrency market’s lack of liquidity and transparency.
Depending on how you look at it, you may find it encouraging to know that the SEC’s concerns are not on the particular companies making the requests but instead on the crypto market. Once the market achieves maturity, according to the SEC standards, the commission is bound to give a node to not one but most probably several of these applications.
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What Is Danksharding?
Derived from the name of Ethereum researcher Dankrad Feist, danksharding introduces a transformative approach to sharding technology. Sharding involves breaking down a blockchain database into smaller, more manageable parts for increased efficiency. Unlike conventional sharding methods, danksharding simplifies the architecture, focusing on a merged market fee concept.
In traditional sharding, each shard has distinct blocks and block proposers. Danksharding streamlines this by having a single block proposer, enhancing transaction processing and data storage efficiency. This innovation addresses the blockchain trilemma by prioritizing security, decentralization, and scalability.
Key Features of Danksharding
1. Merged market fee: Danksharding introduces a unified market fee, streamlining the transaction process by minimizing complexities associated with having multiple block proposers.
2. Optimized data availability: The primary focus of danksharding is to enhance data availability for rollups, a Layer 2 scaling solution on Ethereum. By efficiently managing data, Danksharding significantly improves the network's performance.
3. Simplified sharding architecture: Danksharding simplifies the sharding structure, making it more straightforward and efficient. This approach addresses the challenges posed by the traditional trilemma, fostering a better balance between security, decentralization, and scalability.#ContentStar##比特币# 
