The US Securities and Exchange Commission (SEC) has wrapped up its three-year investigation into Stacks, a Bitcoin Layer 2 blockchain, and its developer, Hiro Systems. The good news? No charges were filed.
A Long Investigation Ends
Muneeb Ali, one of the brains behind the Stacks protocol, shared the news on social media, expressing relief and optimism. He explained that Stacks provided all the information the SEC requested and explained how the network works. Ali believes this is a positive step for the industry, but also highlighted the need for clearer regulations for innovative blockchain projects.
No Exoneration, But a Positive Sign
While the SEC closed the investigation without taking action, it emphasized that this doesn’t mean Stacks is completely off the hook. They could still take action in the future.
A Setback for the SEC
This decision marks another setback for the SEC, which recently dropped a case against Paxos, a brokerage firm, after a year-long investigation into Binance’s BUSD stablecoin.
A Win for Stacks
Stacks’ native token, STX, jumped over 5% in price following the news. The company believes this is a positive sign for the future of Bitcoin and the next generation of the internet.
Overall, the SEC’s decision to close the investigation without taking action is a positive development for Stacks and the broader blockchain industry. It suggests that the SEC may be taking a more nuanced approach to regulating cryptocurrencies, but the lack of clear regulations remains a concern.
