US SEC Drops Probe Into Bitcoin L2 Startup Hiro

IconCryptoNewsTerminal Staff12 Jul, 2024

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US SEC Drops Probe Into Bitcoin L2 Startup Hiro

Following a three-year investigation, the US Securities and Exchange Commission (SEC) has decided to close its probe of Hiro Systems, a Bitcoin L2 stack builder. The startup had raised approximately $70 million through a token sale that occurred between 2017 and 2019. The investigation is now being seen as a victory for cryptocurrency companies that have faced SEC scrutiny. Hiro Systems, formerly known as Blockstack, was founded in 2014 to create a decentralized internet using the Bitcoin blockchain. The company utilized funds raised through its token sale to support the development and launch of its L2 network and applications. In recent times, the SEC has initiated investigations into several cryptocurrency companies, a move seen as a sign of increasing regulatory attention in the sector. However, the closure of the Hiro Systems probe and the recent settlement between the SEC and Paxos Trust Company suggest a potential shift in approach towards the regulation of digital assets.

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