SEC will not take legal action against Bitcoin second-layer ecology Hiro and Stacks

This site (120bTC.coM): Hiro, the basic development tool of Bitcoin L2, publicly announced on X on July 13 that the SEC will not take any further legal action against Hiro and Stacks.

New startups Hiro and Stacks specialize in building smart contracts and infrastructure tools for the second layer of Bitcoin. They are companies focused on the technical needs of developers. Stacks has continued to expand and develop in the past few years, and now builds L2 covering Ordinals , BRC-20, Runes, Stacks, and the upcoming new sBTC Bitcoin asset.

What’s special about Stacks is that it extends the functionality of Bitcoin to more than just a cryptocurrency, but becomes the basis for decentralized applications (DApps) and smart contracts. Because Stacks is an ecosystem anchored in the first layer of Bitcoin, the smart contracts it brings to Bitcoin do not change any of Bitcoin’s features, including the security and stability that make it so popular.

Stacksd App is open and modular, so developers can build on top of each other's apps and produce functionality that wouldn't be possible otherwise. Additionally, since Stacks uses Bitcoin as the base layer, everything that happens in the Stacks ecosystem is backed by the most secure blockchain.

SEC’s Ambiguous Regulatory Standards

On July 9, 2024, SEC Assistant Director Amy Gwiazda sent a notice to the Hiro team informing them that the investigation was concluded and that she would not recommend that the SEC file lawsuits against Hiro and Stacks.

The letter reads as follows:

“We have concluded our investigation into Stacks Blockchain SF4470, and based on the information we currently have, we do not intend to recommend that the SEC Commission take any legal action against Hiro Systems PBC (formerly known as Blockstack PBC).

We made the decision based on the findings of the summary of the last paragraph of Securities Act No. 5310, which "can in no way be construed as indicating that the party is innocent or that no action will ultimately be taken."

The SEC took three years to investigate. Even though securities laws still exist, it is obvious that the SEC has given up on filing lawsuits against technology companies as securities.

Bitcoin second-layer development tools strive for compliance

Notified of the investigation results, Hiro said on Action. This outcome is the best we could hope for from any technology company of its kind, given the current state of regulation of blockchain technology in the United States. This outcome reaffirms our commitment to regulatory compliance and our commitment to supporting developers. The mission of innovative construction on Bitcoin.

Since January 2021, after Stacks launched the Mainnet mainnet, the SEC has launched an investigation into Hiro and Stacks blockchain technology. In the past three years, the Stacks team has provided all relevant information. to the SEC and work hard to explain how the Stacks network works and Hiro’s role in it. We pride ourselves on being a Bitcoin developer-centric company and our tools have continued to evolve over the past few years

We support developers. We strongly believe in the need for Bitcoin L2 to create a clear path and regulatory framework in the United States, and we look forward to continued opportunities to help shape policy to meet the needs of builders of open innovation protocols. The bright future of the next generation network is full of hope. "

SEC's scale is still vague and the pace is slow

Nathaniel Whittemore, a famous Bitcoin commentator, said on the show: "The US Securities and Exchange Commission dropped its three-year investigation into the Stacks ecosystem. . This is a good result, but the cost is ridiculous, which just shows how counterproductive and slow the SEC’s enforcement and regulatory strategy is.”

The SEC always has several standards for whether blockchain is a technology or a security. , this time the Bitcoin second-layer ecosystem Stacks was liberalized and adopted a loose policy. Even the same interpretation of Securities Law No. 5310 was rejected by the reviewers. Compared with the SEC's ruthlessness towards XRP, some people are happy and some are worried. XRP claims to be a blockchain technology company, but the SEC is clinging to XRP like a ferocity. The lawsuit between the two institutions has not yet concluded, but it can be seen that the SEC cannot follow the mold and look at the standards and standards at the same time.

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