The SEC has recently concluded its investigation into Hiro and the Stacks blockchain without recommending any enforcement actions. This investigation, which began over three years ago, has been a significant event in the history of the Bitcoin Layer-2 network.
The investigation was initiated 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. Subsequently, in June 2021, the SEC’s Enforcement Division began looking into Stacks and Hiro Systems.
Throughout the investigation, Hiro has diligently cooperated with the SEC, providing all requested information to explain the workings of the Stacks network and Hiro’s role within it. Muneeb Ali, a board member of Hiro Systems, acknowledged the effort put into collaborating with the SEC.
After over three years of cooperation, Hiro was informed by the SEC staff on July 9 that the investigation had been closed, and no enforcement action would be recommended. This outcome is considered favorable given the current regulatory environment in the US, particularly for companies in the blockchain space.
The team at Hiro expressed their commitment to regulatory compliance and supporting developers who are building and innovating on Bitcoin. They have expanded their developer tools to cover various aspects and are looking to include the new sBTC Bitcoin asset soon.
They also emphasized the importance of establishing a clear regulatory framework in the US and expressed optimism about influencing policies that benefit builders of innovative open protocols.
The closure of the SEC investigation is viewed as a positive development for the future of Bitcoin and the advancement of the internet, reinforcing Hiro’s dedication to its mission and the broader Stacks ecosystem.
This resolution signifies a step forward for companies operating in the blockchain space and highlights the potential for continued growth and innovation in the industry.