SEC Clears Hiro Systems: Victory After 3-Year Probe!

Key Points:

• The SEC concluded a three-year investigation into Hiro Systems, validating their compliance in raising $70 million through token sales from 2017 to 2019.
• Hiro Systems, formerly Blockstack, pioneered the Stacks chain and STX token in 2018, enhancing Bitcoin’s capabilities with decentralized applications and smart contracts.

The US SEC clears Hiro Systems, a blockchain software developer formerly known as Blockstack, that had been ongoing for three years over token sales.

The probe looked at the company’s sale of tokens, which netted $70 million from 2017 to 2019.

US SEC clears Hiro Systems has been the vanguard for innovation in blockchain. This became evident with the introduction of the Stacks chain and the native STX token in 2018. This invention empowered the building of decentralized applications and smart contracts on top of the Bitcoin blockchain, creating an entirely new use case for blockchain. The goals of the Stacks Chain include expanding Bitcoin’s capabilities to be programmable without compromising its security.

Read more: Critical Update: Binance US SEC Lawsuit Advances to Evidence Stage!

SEC Aims to Regulate Initial Coin Offerings

The SEC’s investigation was part of an initiative that sought some regulation over the burgeoning field of initial coin offering and token sales, which grew in a parabolic fashion in the late 2010s. Indeed, the regulatory body especially works to ensure compliance with the laws on securities and protection for investors from probable fraud.

US SEC clears Hiro Systems maintained that token offerings were conveyed to investors in compliance with the law. The STX tokens offered were utility tokens for use in operations and not for speculative investment in the ecosystem.