- SEC drops investigation on Bitcoin L2 Stacks & Hiro system
- STX continues to gain, with 6.47% gains in the next 24 hours. This follows a weekly chart increase of 19.61%.
The year 2024 was not just a volatile crypto-market, it also saw many legal battles. In the past year, SEC officials have expressed their desire to continuously enforce and punish to ensure that legal standards are adhered to.
Hiro (formerly Blockstack) is one of the crypto firms that have been under legal scrutiny.
SEC ends Stacks and Hiro Investigation
According to the SEC’s latest filing, after three years of investigation, it dropped its investigation into Hiro Systems. MuneebThe co-creator and creator of StacksThe good news was announced by saying,
“Earlier this week, we received word from the SEC that after 3 years, they are terminating their investigation into the @Stacks blockchain (the protocol) and Hiro System (a company) with no action..”
You can also find out more about the following: agency (SEC), Through a letter sent to the company,
“We have concluded the investigation as to Stacks Blockchain. Based on our information as of this date, we do not intend to recommend an enforcement action by the Commission against Hiro Systems PBC.”
Hiro reported to the SEC in 2021 that they were engaged with them over certain issues. However, the agency was sceptical. Hiro argued, firstly, that Stack Tokens were not securities because they didn’t provide any blockchain management services.
But the SEC did not agree and launched an investigation which lasted three years.
SEC harassment towards crypto companies
Securities and Exchange Commission has become a hot topic amongst crypto investors, traders and entrepreneurs due to its continuous meddling. The SEC sued Coinbase and other firms this year for allegedly violating the Howey Test by claiming that Coinbase’s investment contracts are securities.
Consensys was also sued by the agency, who argued that Consensys had been involved in offering and selling securities without being registered as a brokerage.
The SEC is not popular in many parts of the community. Muneeb is one example.
“We need a regulatory system that meets builders of innovative open protocols where they are. We’ll continue working with policymakers and developers to help make this happen.”
You can find out more about this by clicking here. next For Stacks
The result of the investigation represents a significant win for Stacks. This gives Stacks hope for a future decentralized for blockchain technology. This is an important win for the cryptocurrency industry, and it offers other companies a model to copy.
The success of a business is based on its ability to achieve results. Stacks’s STX Investors can feel more confident if the company has an improved reputation. The market cap will rise, as well as the trading volume and prices.
STX Price Charts: Impact
STX’s price was $1.68 at the time this article was written, after a 1961% increase in just 7 days. The market cap of STX increased by 6.47% in just 24 hours to $2.483B. The trading volume fell by 5.5%, to $140M in the same time period.
AMBCrypto found that STX is currently experiencing a bullish trend in its market sentiment. STX Chaikin’s Money Flow at press time was positive, 0.10. The average volume weighted price was higher, indicating a rise in the buying pressure.
During the previous 7 days the Relative Strength Index, or RSI at 51, showed a dramatic increase from the zone of oversold.
The trend was a continued rise of the buyers dominance.
The altcoin Money Flow Index, at 58, confirmed a possible uptrend due to the increasing buying pressure.
If the buyers continue to exert pressure and STX is able to close above the significant resistance of $1.797 then the bulls are in control and will drive the price up as high as $2.138. If markets experience a decline, STX may retest $1.266, its crucial support level.
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Source: ambcrypto.com