After the launch of the Stacks 2.0 blockchain in January 2021, the U.S. Securities and Exchange Commission (SEC) will no longer be able to regard STX as a security, and exchanges will list it, said the New York startup Blockstack.
In a document published in early December, документе the independent adviser Blockstack PBC and the law firm Wilson Sonsini Goodrich & Rosati say that with the launch of Stacks 2.0 the blockchain will decentralise control over the STX token, and Blockstack itself will play a less significant role in the network’s development.
The launch of Stacks 2.0, originally planned for 2020, is now scheduled for 14 January 2021. At the same time the company will change its name to Hiro Systems PBC. The branding implies that the name will not include the words “block” or “stack”. The company itself, however, will not run its own node and plans to develop tools only on top of the Blockstack network.
After the launch of Stacks 2.0 the company will file with the SEC a notice of cessation of reporting. Blockstack said that after this, American cryptocurrency exchanges would be able to list STX, and US residents would be able to trade the token.
“Over the past few years we have followed a clear path to decentralisation. There are now several independent organisations in our ecosystem, and the success of the network will not depend on a single company,” said Blockstack CEO Muneeb Ali in a Reuters interview.
BREAKING: Reuters on the expected changes to US trading and securities status of the Stacks cryptocurrency. https://t.co/d36YynUdej
— Muneeb (@muneeb) December 7, 2020
The statement does not mean that the SEC recognises it, and exchanges will regard this argument as sufficient evidence of STX’s status for listing.
CEO Blockstack: Bitcoin will be the foundation of Web 3.0 and the digital society of the future
Previously Blockstack asserted that Stacks is a utility token that is not used for speculative purposes. However a number of companies making similar claims have fallen victim to lawsuits brought by the SEC. Among them are Block.one, Telegram and Kik.
For this reason, and to avoid potential regulatory problems, Blockstack has always treated STX as a security under U.S. law. In September 2019 the company raised $23 million in the first regulated crowdsale in the United States.
In August 2020 Blockstack provided the Stacks Foundation 100 million tokens of STX for a total of $27 million to increase the decentralisation of the network. The Stacks Foundation will also receive rights to the Stacks 2.0 intellectual property.
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