Regulation

One of the most promising of these is the Lightning Network, a second-layer protocol built on top of the Bitcoin blockchain. The Lightning Network allows for the creation of payment channels between users, enabling them to make unlimited transactions without the need to broadcast them to the entire network. This dramatically increases Bitcoin's transaction speed and scalability, making it a more viable option for use as a global payment network.

At the center of this debate are two federal agencies: the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Both agencies have jurisdiction over different aspects of the cryptocurrency market and have taken different approaches to regulate it.

Yao Qian works in the technology department of People’s Bank of China, the country’s central bank and financial market regulator