SEC Ends Investigation Into Stacks Network and Hiro Systems
Recently, the U.S. Securities and Exchange Commission (SEC) concluded its investigation into the Stacks network, a Bitcoin scaling platform, and its original developer, Hiro Systems. The official announcement was made via a filing released on Friday, providing clarity on the situation.
Background of the Investigation
- The SEC initiated an investigation in 2021, despite claims by Stacks network contributors that their token sale had been “SEC-qualified.”
- Hiro Systems, the original developer, received confirmation from the SEC staff on July 9, 2024, stating that the investigation regarding the Stacks Blockchain had been concluded.
Hiro Systems’ Response
- Following the decision, Hiro Systems expressed their satisfaction with the outcome and highlighted their dedication to regulatory compliance in a blog post.
- The company emphasized their mission to support developers in their endeavors to innovate on the Bitcoin network.
Industry Developments
- This conclusion adds to a recent trend in the cryptocurrency industry, with stablecoin issuer Paxos also announcing the end of an SEC investigation into its BUSD stablecoin in collaboration with crypto exchange Binance.
Hot Take: SEC Investigation Closures Reflect Growing Industry Compliance
These recent developments signify a positive shift towards regulatory clarity and compliance within the crypto industry, paving the way for continued innovation and growth in a more regulated environment.
Sources:
- SEC Filing: SEC Stacks Investigation Closure
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