SEC Concludes Three-Year Probe into Bitcoin Stacks Developer Hiro

Summary:
The United States Securities and Exchange Commission (SEC) has concluded its three-year investigation into Hiro Systems, the developer behind Bitcoin’s Stacks layer-2 blockchain, without recommending any enforcement action. Hiro, formerly known as Blockstack, has complied with SEC regulations since 2019 by treating its native token, STX, as a security and utilizing various regulatory exemptions for fundraising. In 2021, Hiro argued that the Stacks blockchain’s decentralization removed its classification as a securities issuer. The SEC’s decision follows a similar move regarding Paxos and its Binance USD stablecoin, indicating a possible shift in the SEC’s approach to crypto regulation. Despite these developments, the SEC continues to pursue cases against other major crypto firms like Ripple, Binance, Kraken, and Coinbase. The performance of the STX token reflects market reactions to these regulatory outcomes.