SEC Closes Investigation On Bitcoin L2 Stacks And Builder Hiro

By: Eva Baxter

The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into Stacks, a Bitcoin Layer 2 scaling network. Stacks, previously known as Blockstack, raised $70 million through token sales from 2017 to 2019. This marks a significant milestone in the ongoing efforts of the crypto industry to establish a more stable regulatory environment.

The investigation's conclusion means the SEC has recommended no enforcement actions against the network or its primary builder, Hiro. This decision is likely to be seen as a relief for the wider crypto community, which has been under increased scrutiny from regulatory bodies worldwide.

Stacks serves as a Bitcoin scaling solution, enabling faster and more efficient transactions on the Bitcoin network. The project is crucial for the mass adoption of Bitcoin, seeking to solve the scalability issues that have long plagued the blockchain.

This favorable outcome for Stacks and Hiro emphasizes the evolving understanding and potentially more lenient approach of the SEC towards crypto-related ventures. Companies like Stacks and developers such as Hiro aim to innovate within the confines of legal frameworks, offering scalable solutions that promise to augment the usability of Bitcoin.

With the conclusion of this investigation, industry leaders may feel encouraged to continue pushing the envelope of what blockchain technology can achieve, knowing that regulatory bodies are becoming increasingly supportive of their efforts to innovate responsibly.