US SEC Ends Investigation into Stacks Blockchain Developer Hiro Systems

• The firm is the developer of Bitcoin’s Stacks layer-2 blockchain.
• The US agency has dropped two investigations this week in regards to cryptocurrencies.

According to a regulatory document made public on July 12, the US SEC has ended its three-year investigation into Hiro Systems. The firm is the developer of Stacks layer-2 blockchain. And was involved in the $70 million token sales that took place from 2017 to 2019.

Since its 2018 inception, Hiro (formerly Blockstack) has treated its native token, STX, as a security under the US law. But in 2021, Hiro said that the business was no longer selling securities. Since the Stacks blockchain had become substantially decentralized.

The company said in a filing:

“Management concluded further that if Hiro is no longer in the position of providing, and will no longer be able to provide, essential managerial services to the Stacks Blockchain, then it is no longer necessary for Hiro to treat the Stacks Tokens as investment contracts that are securities under the federal securities laws.”

Second Investigation Dropped in a Week

Moreover, the US agency has dropped two investigations this week in regards to cryptocurrencies. In relation to its investigation into the Binance USD (BUSD) stablecoin, the SEC chose not to pursue enforcement action against the Web3 infrastructure platform, as Paxos revealed on July 11.

Furthermore, Ripple, Binance, Kraken, and Coinbase are among the companies that the SEC is continuing to pursue in its enforcement activities. On the other hand, authorities’ capacity to take a firm stand against purported infractions by crypto issuers has been severely limited. This is due to a string of recent court decisions, including a historic Supreme Court decision in June.

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