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Edited by Yamini003 at 22-12-2023 04:03 PM
On December 6th, Bitcoin surged to over $44,000, reaching a high of $44,496, marking a new high in 20 months with a volatility of 10.11%. The cryptocurrency market, which has been quiet for a long time, is once again stirring up waves of excitement. Industry insiders believe that the main reason for Bitcoin's continuous rise this time is the anticipation of the approval of Bitcoin spot exchange-traded funds (ETF) by the U.S. Securities and Exchange Commission (SEC).
The approval of Bitcoin spot ETF is seen as a booster for the market. On November 20th, the U.S. Securities and Exchange Commission (SEC) disclosed a memorandum on its official website, revealing discussions between the SEC, the world's largest asset management company BlackRock, and Grayscale on the listing of Bitcoin Trust ETF and proposed rule changes. It is well-known that U.S. regulatory authorities have always expressed concerns about the price manipulation, money laundering, and security risks associated with cryptocurrencies. Therefore, the approval of a Bitcoin spot ETF has been in a pending state. Now, BlackRock is expected to apply for approval of a Bitcoin spot ETF.
This would mean that investors can trade on traditional markets such as NASDAQ or the New York Stock Exchange (NYSE) and participate in the Bitcoin market in a compliant manner without directly holding cryptocurrencies. This move is a departure from the chaotic trading environment of the cryptocurrency market.
Beyond compliant trading, this also demonstrates the SEC's recognition of the maturity, risk factors, and regulatory framework of the cryptocurrency market, providing assurance for attracting more institutional investors into the market. It is worth noting that in October 2021, the first Bitcoin futures ETF, ProShares Bitcoin Strategy (NYSE: BITO), officially debuted on the New York Stock Exchange, with trading volume close to $1 billion on the first day, setting a new record.
The gradual improvement of the SEC's attitude toward cryptocurrency ETFs serves as a confidence booster for the market, opening up the possibility of regulated trading, which could be a lifeline for the seemingly endless bear market, bringing capital, institutions, and third parties from the dormant circle into the market, all of whom appear to anticipate strong positive trends and significant opportunities on the road to compliance.
The Decentralized Path to Compliance
Regulation has become a new trend in the development of the blockchain industry. More and more industry professionals are beginning to focus on regulatory and compliance issues related to blockchain technology and how to gain more recognition and acceptance from countries or governments.
In early January 2024, we may witness compliant trading of Bitcoin, followed by the gradual approval of more cryptocurrency ETFs. This is just part of the path to regulatory compliance in the blockchain ecosystem. In the future, we will likely achieve relative legalization without sacrificing the decentralized principles of blockchain projects.
First, we must form a consensus on the view that the unique decentralization characteristics of blockchain technology are not contradictory to centralized regulatory supervision. Second, on the road to gradual compliance, policies may ensure the freedom to create and maintain open-source technology, ensure the public verifiability of information, and respect individual sovereignty as the foundation. This will lead to innovative regulation of public blockchains, smart contract applications, holders of distributed tokens, and decentralized autonomous organizations.
As mentioned in the article "Regulatory Compliance is the Last Puzzle of Blockchain Decentralization" by Mario Laul and Placeholder, the paths of gradual decentralization and gradual compliance will eventually intersect. The challenge lies in seeking legal advice applicable to specific situations, making every effort to comply with all applicable laws, striving for balanced regulatory outcomes in disputed or unclear areas, and making every effort to comply with clearly defined laws and regulations once achieved.
The world moves from disorder to order, and the blockchain industry is beginning to abandon its original rebellious attitude, gradually shifting to a cooperative and win-win development model. This also sends a strong signal to the traditional market, integrating the cryptocurrency market more effectively into the mainstream financial system, achieving normalization and standardization, reducing market risks and losses, and enhancing the credibility and trust of the blockchain industry. |
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Post time 15-12-2023 13:17:33