SEC Stops Checkmarking Rule Changes in Crypto

The crypto community has scored another significant victory against the US Securities and Exchange Commission (SEC).

On July 12, Hero Systems, the developer behind Stax, announced that the SEC had notified them on July 9 to end its investigation. Hiro raised $70 million from token sales between 2017 and 2019.

The SEC piles investigations

In the letter, the SEC's enforcement division indicated that it will not take any enforcement action against the company. However, the announcement made it clear that this decision should not be taken as a guarantee or a guarantee that future actions from the investigation will not occur.

Munib Ali, a board member at Hero Systems, said this result is the best a company in the industry can hope for, but US regulations still need to be improved. In the year In 2019, the stack had its first SEC-qualified offering and became decentralized before the mainnet launch in January 2021. Despite this, the SEC began its investigation in July 2021.

“We need a regulatory system that meets the needs of developers of innovative open protocols. We will continue to work with policymakers and developers to help make this happen. The closure of the Stacks investigation offers a bright future for decentralized technologies for Bitcoin and the next-generation Internet, Ali said.

Read more: What are Sidechains and how do they work?

The SEC's decision angered the crypto community, noting that Stax's compliance efforts did not shield it from scrutiny. Billionaire investor Mark Cuban said that while the SEC's move is positive, it still presents risks for projects that want to work closely with the regulator.

“If you need further proof of the insanity at the SEC… they haven't dropped their investigation… because it's insane because Stack is one of the very few tokens allowed to fund their token in 2019. Cuban commented.

Meanwhile, this decision comes in an eventful week for Stacks' STX token, which has seen a nearly 20% increase over the past seven days. According to BeenCrypto, it is selling for $1.7 as of press time.

Read More: How Does Regulation Affect Crypto Trading? Complete guide

Notably, this is the second crypto-related investigation the SEC has launched this week. On July 11, Paxos announced that the SEC has decided not to take enforcement action regarding its investigation into the Binance USD (BUSD) stablecoin.