The SEC has closed its three-year investigation into Hiro Systems (formerly Blockstack), a Bitcoin L2 Stacks Developer that raised $70 million from token sales from 2017 to 2019, Coindesk reports.
The outcome of the investigation represents another victory in the cryptocurrency industry's years-long battle with the regulator.
“Based on the information we have as of this date, we do not intend to recommend enforcement action by the Commission against Hiro Systems PBC (formerly Blockstack PBC),” the SEC said in its letter to Hiro.
Stacks (STX) price rose 4.3% after the SEC halted its investigation.
What is Hiro Systems (formerly Blockstack)?
Hiro builds tools for developers to build applications on Stacks, a layer-2 blockchain that supports Bitcoin.
Blockstack launched the first version of the Stacks chain, its eponymous token (STX), in 2018.
*This is not investment advice.