After more than three years, the SEC has closed its investigation into Hiro Systems and the Stacks blockchain without recommending any enforcement action. This investigation began following the first-ever SEC-qualified offering by Stacks in 2019. The Stacks ecosystem has been decentralized since before the mainnet launch in January 2021.
In June 2021, the SEC’s Enforcement Division launched its investigation into the blockchain and developer Hiro Systems. Hiro’s vision has consistently focused on building the next generation of the internet, prioritizing user 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.
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. The team at Hiro expressed their commitment to regulatory compliance and supporting 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. It bolsters Hiro’s commitment to its mission and the broader Stacks ecosystem. The team emphasized the importance of creating a clear regulatory framework in the US and expressed hope for continued opportunities to shape policies that support builders of innovative open protocols.
The SEC’s decision to close the investigation into Hiro Systems and the Stacks blockchain without recommending any enforcement action is a significant development in the history of the Bitcoin Layer-2 network. This outcome reaffirms the team’s dedication to regulatory compliance and supporting developers in the blockchain space. Moving forward, Hiro remains committed to its mission of building the next generation of the internet with a focus on user control and ownership.
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