The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into Hiro Systems, formerly known as Blockstack. The regulator will not take enforcement action against the company.

The investigation was related to the token sale conducted by Hiro Systems between 2017 and 2019. The company sold $70 million in tokens and launched the Stacks mainnet in January 2021. Subsequently, the SEC’s enforcement division began to scrutinize the activities of Hiro Systems and the Stacks blockchain. The investigation lasted three years. The company’s management claims that it complied with all requests for information from the regulator.

“On July 9, 2024, the SEC informed us that its investigation was complete and that the agency would not take enforcement action against us. Given the current state of the regulatory environment in the United States, this is the best outcome any crypto company can hope for,” Hiro Systems said.

For the crypto industry, which often faces intense regulatory scrutiny, the SEC’s decision is especially significant because it signals a rapprochement with the agency. Following Hiro Systems’ announcement, the price of the Stacks token (STX) rose by about 5% in 24 hours, jumping from $1.50 to $1.70.

The SEC has completed its investigation into Hiro Systems just a day after it announced similar action against stablecoin issuer Paxos.