The U.S. Securities and Exchange Commission (SEC) has closed its three-year investigation into the Stacks blockchain and Hiro Systems without taking any action.
This decision has prompted mixed reactions from industry leaders, including one of the Winklevoss brothers.
Crypto industry responds
Muneeb Ali, co-creator of Stacks, announced the investigation’s conclusion on X. “This is the best outcome a company in our industry could ask for, but the US can do better,” Ali stated.
𝗡𝗘𝗪𝗦: SEC drops a three-year investigation into Stacks with no action.
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.
Stacks…
— muneeb.btc (@muneeb) July 12, 2024
He emphasized the need for a regulatory system that better accommodates builders of innovative open protocols.
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The Stacks project, which conducted the first-ever SEC-qualified offering in 2019, has been under scrutiny since June 2021. Despite the positive outcome, Ali highlighted the strain of a three-year investigation into a company that had actively sought to comply with regulations.
Tyler Winklevoss, co-founder of Gemini, took a more critical stance. Responding to Ali’s announcement, Winklevoss called the SEC and its chair, Gary Gensler, “corrupt.”
The @SECGov and @GaryGensler are so corrupt. Today, they dropped another sham investigation. Stacks was the first project to ever “come in and register” with the SEC. This is 3-year investigation was their reward. What a disgrace. https://t.co/rSQFXyUK17
— Tyler Winklevoss (@tyler) July 12, 2024
Tyler also labeled the investigation a “sham.” While Ali sees the investigation’s closure as a hopeful sign, Winklevoss’s response points to concerns about regulatory fairness and efficiency.
This development comes as the crypto industry grapples with increasing regulatory scrutiny. It follows the SEC’s decision to end its investigation into Paxos.
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