As a seasoned crypto investor with a keen interest in regulatory developments, I am elated by the recent turn of events regarding the SEC’s investigation into Hiro and the Stacks blockchain. Having lived through the ups and downs of the crypto market and witnessed the impact of regulatory uncertainty on project growth, I can’t help but feel a sense of relief and optimism.
The Securities and Exchanges Commission (SEC) in the United States has recently terminated its probe into Bitcoin layer 2 projects, specifically Hiro. This announcement follows the SEC’s decision to discontinue its investigation against Paxos, which was accused of securities law violations related to the issuance of Binance USD (BUSD) stablecoin earlier this week.
Several people are praising these advancements as the strict financial regulatory body seems to be taking a more lenient approach towards crypto initiatives, avoiding stifling progress with securities violation accusations.
In a correspondence to the defense’s legal team, the Securities and Exchange Commission (SEC) announced that their investigation regarding Stacks Blockchain has been completed. As of now, they have no plans to propose any enforcement action by the SEC against Hiro Systems PBC, previously known as Blockstack PBC.
The Securities and Exchange Commission (SEC) added the standard disclaimer in its letter, stating that this correspondence should not be interpreted as a clearance or an assurance that no further investigation will ensue following their probe.
Hiro, previously called Blockstack, introduced the initial version of Stacks layer 2, along with the STX token, in 2018. The company is dedicated to helping developers create dApps on Stacks. They offered the STX token as a security under SEC supervision due to their management of the Stacks blockchain, making the project centralized.
As a researcher studying the development of the Stacks blockchain, I’ve observed that in 2021, the layer 2 shifted from managing Stacks, allowing it to assume a decentralized form through adopting Proof of Transfer consensus mechanism during its mainnet launch. Consequently, STX sales beyond this point were no longer considered securities offerings by the project team. However, this assertion was met with skepticism from the Securities and Exchange Commission (SEC), leading to an investigation against Hiro and the Stacks blockchain.
Muneeb Ali, the co-founder of Stack and a board member at Hiro, shared on X that Stack successfully carried out the first SEC-approved offering in the year 2019. The collaboration between Hiro and Stack lasted for over three years, during which they provided all necessary information to the SEC and made efforts to clarify how the Stacks network functions, while Hiro was identified as a developer tooling company.
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2024-07-14 19:59