Can someone explain in simple words what's the SEC and why we need it?
The SEC stands for the Securities and Exchange Commission. It is a US-based entity and they essentially regulate the stock market (Securities and Exchanges).
I hear so much about the SEC in the last few weeks. Can anyone explain what's so important about this decision. why it's good for the market, and why we get rejected?
The SEC is the entity that would approve or reject the ETF proposals. A lot of people think an ETF is an important decision because an approval would bring a great deal of legitimacy to Bitcoin as an asset. Also, it would open the doors for many institutional investors to easily diversify their portfolios into Bitcoin, as an ETF is essentially a way to buy Bitcoin straight off the stock market (however you don't hold the coins, the investment group does (risky)). This would be good for the market in a number of ways. Easy access to invest in Bitcoin is a good thing. However, In order for an ETF to get approved, the SEC needs to deem the asset to be regulated and not subject to anonymous manipulation. Obviously, Bitcoin can be manipulated easily by anonymous people, as most of the largest Bitcoin exchanges out there are not US based and therefore don't have KYC/anti-money laundering requirements.
This is why the last proposal was rejected and it's why future proposals are likely to be rejected as well.