The U.S. Securities and Exchange Commission (SEC) has decided to end its investigations into Hiro Systems (formerly Blockstack) and Paxos. This marks a significant win for the cryptocurrency industry, boosting confidence among investors in Stacks and the broader market.
The SEC’s three-year investigation into Hiro Systems concluded without pursuing enforcement actions, signaling a potential shift in regulatory attitudes towards cryptocurrencies. Hiro Systems, which raised $70 million through token sales, successfully argued that its tokens were not securities, particularly after achieving full decentralization in 2021.
The news has had a positive impact on the Stacks (STX) token, which saw a 5% surge in price following the announcement. This development, coupled with the SEC’s decision regarding Paxos, suggests a changing regulatory landscape that could bolster investor sentiment in the crypto sector.
