US SEC Ends Investigation into Stacks Blockchain Developer Hiro Systems

The U.S. Securities and Exchange Commission （SEC） has ended its three-year investigation into Hiro Systems, the developer of the Stacks layer-2 blockchain. This article explores the details of the investigation and its implications for the blockchain sector.

Points

• Investigation Conclusion: The SEC ends its three-year investigation into Hiro Systems.
• Hiro Systems: Overview of the company and its role in developing the Stacks blockchain

The U.S. Securities and Exchange Commission （SEC） has concluded its three-year investigation into Hiro Systems, a significant developer in the blockchain sector known for its work on the Stacks layer-2 blockchain. The decision marks a notable victory for the cryptocurrency industry amidst ongoing regulatory scrutiny.

Investigation Details and Outcome

Hiro Systems, formerly known as Blockstack, has been under investigation since its inception in 2018. The company has treated its native token, STX, as a security under U.S. law. However, in 2021, Hiro announced that it would no longer be selling securities as the Stacks blockchain had become substantially decentralized. This move was aimed at aligning with regulatory expectations and promoting the decentralized nature of the platform.

The company stated in a filing:

“Management concluded further that if Hiro is no longer in the position of providing, and will no longer be able to provide, essential managerial services to the Stacks Blockchain, then it is no longer necessary for Hiro to treat the Stacks Tokens as investment contracts that are securities under the federal securities laws.”

The SEC’s decision to drop the investigation with no action taken is a significant development. Muneeb Ali, the creator of the Stacks protocol and current CEO of Trust Machines, expressed optimism for the future of decentralized technologies:

“The closing of the Stacks investigation gives us hope for a bright future for decentralized technologies for Bitcoin and the next-generation internet.”

Implications for the Blockchain Sector

The conclusion of the SEC investigation into Hiro Systems is a positive signal for the broader blockchain and cryptocurrency industry. It underscores the potential for regulatory clarity and the acceptance of decentralized platforms. This outcome may encourage further innovation and development within the sector, fostering a more favorable environment for blockchain projects.

Conclusion

The SEC’s decision to end its investigation into Hiro Systems without taking action is a noteworthy victory for the cryptocurrency industry. It highlights the potential for regulatory bodies to recognize and support the decentralized nature of blockchain technologies. This outcome is likely to bolster confidence in the sector and pave the way for further advancements in decentralized platforms.

解説

• Regulatory Clarity: The end of the SEC investigation into Hiro Systems signifies potential regulatory acceptance of decentralized platforms.
• Hiro Systems’ Role: Overview of Hiro Systems and its contributions to the Stacks blockchain.
• Industry Impact: Implications for the blockchain and cryptocurrency industry, including increased confidence and potential for innovation.
• Future Prospects: Positive outlook for the development of decentralized technologies and their role in the next-generation internet.