The cryptocurrency community has another reason to celebrate as the US Securities and Exchange Commission (SEC) has dropped its investigation into Hiro Systems, a developer integrated with the Bitcoin Layer-2 Stacks network.
A filing with the Securities and Exchange Commission on July 12 revealed that the regulator has closed its three-year investigation into Hiro Systems (formerly known as Blockstack) and will not seek enforcement action.
The decision comes just one day after the SEC concluded its investigation into stablecoin issuer Paxos.
SEC Ends 3-Year Investigation Into Hero Case
Hiro raised $70 million in token sales between 2017 and 2019 and launched the Stacks mainnet in January 2021. The SEC’s enforcement division subsequently announced an investigation into the company and the Stacks blockchain.
The investigation has been ongoing for the past three years, with Hero reportedly complying with regulators’ requests for information. Earlier this week, the SEC notified Hero that its staff had concluded its investigation.
“On July 9, 2024, the SEC staff informed us that they have concluded their investigation and do not intend to recommend enforcement action. Given the current state of the U.S. regulatory environment, this is the best outcome any company in our industry could hope for,” Herro said in a statement. advertisement Friday.
Stacks (STX), which launched with a proof-of-transfer consensus mechanism in January 2021, surged sharply following the SEC news. While most altcoins suffered alongside Bitcoin, STX jumped from its lows of $1.5 to over $1.70. The coin is trading at around $1.69 at the time of writing, up around 5% in the past 24 hours.
The Securities and Exchange Commission has completed its investigation into Paxos.
As mentioned above, the SEC’s conclusion regarding the Hiro Systems investigation comes just one day after it announced a similar finding for Paxos. The investigation into the U.S.-based crypto firm concerns Binance USD (BUSD), a Binance-branded stablecoin issued by Paxos.
Binance discontinued support for BUSD in August 2023 amid an SEC investigation.
The SEC announced on Thursday, July 11, 2024, that it has concluded its investigation and will not seek any enforcement action.
“We have concluded our investigation into Paxos Trust Company, LLC. Based on the information available to us to date, we do not intend to recommend any enforcement action by the Commission against Paxos,” the SEC wrote.