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SEC Launches Investigation into Stacks Blockchain and Developer Hiro Systems – DL News
- SEC drops investigation launched in 2021.
- Hiro had notified the SEC that Stacks would be going decentralized prior to the mainnet launch.
The U.S. Securities and Exchange Commission has dropped a three-year investigation into the Stacks blockchain and its developer Hiro Systems, according to a report Friday. filing in court accompanied by a letter.
Hiro, formerly known as Blockstack, has grown 70 million dollars from token sales from 2017 to 2019. Hiro developed the Stacks chain with his STX token in 2018.
Hiro spent 10 months and $2 million in legal fees to register his security token with the SEC, DL News reported previously, quoting co-founder Muneeb Ali.
Ali said that the Stacks ecosystem had thus become decentralized before the mainnet launch in January 2021, and Hiro notified the SEC no longer provided “essential management services to the Stacks Blockchain,” so it was no longer necessary for the company to treat Stacks tokens as securities.
Within a few months, the SEC began its investigation.
Ali said Friday in a Post on X that “we have received notice from the SEC that after 3 years, they are concluding their investigation into the Stacks blockchain (the protocol) and Hiro System (a company) with no action.”
He added: “We are pleased that the SEC has abandoned the investigation after all this time and effort. This is the best outcome a company in our industry could ask for, but the United States can do better.”