- SEC has dropped its investigation of Bitcoin L2 Stacks and Hiro systems
- STX soon gained by 6.47% in 24 hours, after hiking by 19.61% on the weekly charts
As a researcher with experience in the crypto industry, I am thrilled to report that the Securities and Exchange Commission (SEC) has dropped its investigation into Hiro systems and the Stacks blockchain. This is a significant development for the crypto community as it marks the end of a three-year long probe that cast a shadow over Hiro and the wider industry.
In 2024, both cryptocurrency market instability and numerous legal disputes have emerged. The Securities and Exchange Commission (SEC) has been actively enforcing and prosecuting cases to uphold regulatory compliance from their perspective throughout the year.
One crypto firm that has suffered legal scrutiny is Hiro (formerly Blockstack).
SEC terminates Stacks and Hiro investigation
Following a three-year long probe, the SEC has concluded its investigation into Hiro Systems, as indicated in their most recent report. Muneeb, one of the founders of Stacks, shared this development publicly.
This week, the SEC announced the conclusion of their three-year probe into the Stacks blockchain and Hiro System. No further action will be taken against either party.
The agency (SEC), through a letter to the firm, claimed,
“After thoroughly examining the Stacks Blockchain matter, we currently don’t plan to propose any regulatory intervention by the Commission towards Hiro Systems PBC based on our available information as of now.”
In the year 2021, Hiro disclosed their dealings with the Securities and Exchange Commission (SEC) regarding certain matters. However, the SEC expressed reservations. Initially, Hiro contended that Stack tokens could not be categorized as securities because they didn’t provide any management functions to the blockchain network.
However, the SEC disagreed and started an investigation that lasted for three years.
SEC’s harassment of crypto companies
The Securities and Exchange Commission (SEC) has been a subject of intense scrutiny among crypto community members, including investors, traders, and founders, due to its persistent involvement in the industry. In 2023, the SEC filed lawsuits against several companies, including Coinbase, asserting that their investment contracts do not meet the exemptions under the Howey test and therefore are considered securities.
Additionally, Consensys was accused by the agency of engaging in securities sales and distribution without registration as a broker.
It’s no surprise that many people in the community express dissatisfaction with the Securities and Exchange Commission’s actions, as mentioned by Muneeb.
As a crypto investor, I believe it’s crucial for us to establish a regulatory framework that caters to the creators of groundbreaking open protocols. I will persist in collaborating with policymakers and developers to ensure we make significant strides towards achieving this goal.
What next for Stacks?
The outcome of the investigation represents a significant triumph for Stacks, providing the company with optimism for a more decentralized future in the realm of blockchain technologies. In essence, this victory serves as a substantial advancement for the crypto sector and sets a path for other organizations to emulate.
Without a doubt, Stacks’s (STX) successful performance in the industry enhances its reputation, providing investors with increased confidence. Consequently, this boosts prices, trading activity, and market capitalization, propelling them upward on the charts.
Impact on STX’s price charts
When I penned down these words, STX was priced at $1.68 on the stock market following a robust 19.61% increase in just one week. The company’s market capitalization witnessed a noteworthy growth of 6.47%, reaching an impressive $2.483 billion within the last 24 hours. Nevertheless, there was a slight decrease of 5.5% in trading volume to approximately $140 million over the same time frame.
Based on AMBCrypto’s examination, the bullish outlook for STX is gaining momentum as indicated by a favorable Chaikin Money Flow of 0.10 at present. This signifies an increase in demand and higher purchasing power.
Over the past week, the Relative Strength Index (RSI), which was at 51, experienced a significant increase, moving away from the oversold territory.
This pointed to a further sustained rise in buyers’ dominance.
Lastly, the Money Flow Index of the altcoin indicates a possible upward trend with a reading of 58, reflecting increasing buying pressure.
As an analyst, I would interpret the situation as follows: Should the buying pressure persist and STX manage to close above its notable resistance at approximately $1.797, bulls will take charge of the market and push prices up towards $2.138. Conversely, if markets experience a correction, STX may revisit its crucial support level at around $1.266.
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2024-07-13 16:08