The US Securities and Exchange Commission (SEC) is suspending its investigation into the company behind the popular Bitcoin (BTC) layer-2 chain Stacks (STX).
According to a new Form 1-U filing from the SEC, the securities regulator has investigated STX developer Hiro and decided not to take further action against the crypto company.
“Termination of SEC investigation
On July 9, 2024, Hiro Systems PBC (“Hiro”) was informed by the staff of the Securities and Exchange Commission (the “SEC”) that the staff had completed its investigation regarding the Stacks Blockchain and that based on the information provided was known to The staff does not intend to recommend an SEC enforcement action against Hiro as of that date.”
This concludes a three-year SEC investigation into Hiro, formerly known as Blockstack. The company raised approximately $70 million in token sales between 2017 and 2019.
According to a letter accompanying the decision, the SEC is not ruling out the possibility of a lawsuit against Hiro in the future.
“We are providing this notice under the guidelines set forth in the final paragraph of Securities Act Release No. 5310, which states in part that the notice “shall not be construed in any way to indicate that the party is exonerated or that no action should be taken.” ultimately the result of staff research. ”
The announcement is largely being received as another victory for the crypto industry.
In similar news, the SEC announced yesterday that it was dropping its investigation into Paxos, the BUSD stablecoin issuer.
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Featured image: Shutterstock/Fathurdavega/Chuenmanuse