Recently, the Securities and Exchange Commission (SEC) announced the closure of its investigation into Hiro and the Stacks blockchain without recommending any enforcement action. This investigation, which began over three years ago, has been a significant chapter in the history of the Bitcoin Layer-2 network. The SEC’s Enforcement Division launched the investigation following the first-ever SEC-qualified offering by Stacks in 2019.
Despite the investigation, STX was up 5.51% and trading at $1.7 as of press time, based on CryptoSlate data. This positive movement indicates that investors have confidence in the future of the Stacks ecosystem despite the regulatory scrutiny it has faced.
Hiro Systems have consistently focused on building the next generation of the internet, where users have unprecedented control and ownership. Throughout the investigation, Hiro diligently complied with all requests for information, striving to explain the workings of the Stacks network and Hiro’s role within it. Muneeb Ali, who serves on the board of Hiro Systems, highlighted the effort put into cooperating with the SEC. Although pleased with the outcome of the investigation, Ali emphasized the need for a regulatory system that better supports builders of innovative open protocols.
On July 9, Hiro was informed by the SEC staff that the investigation was concluded, and no enforcement action would be recommended. This outcome is viewed as highly favorable for companies in the blockchain space and reaffirms Hiro’s commitment to regulatory compliance. The team at Hiro expressed their belief in the importance of creating a clear regulatory framework in the US to support developers building and innovating on Bitcoin. The closure of the SEC investigation is seen as a positive sign for the future of Bitcoin and the next generation of the internet, bolstering Hiro’s commitment to its mission and the broader Stacks ecosystem.
The closure of the SEC investigation into Hiro and the Stacks blockchain marks a significant milestone for the project and the broader blockchain industry. It highlights the importance of regulatory compliance and the need for a supportive regulatory framework for companies building innovative open protocols. As Hiro continues to focus on its mission of building the next generation of the internet, the outcome of the investigation serves as a positive indication of the future prospects for the Stacks ecosystem.
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