The US Securities and Exchange Commission (SEC) has provided crucial clarity for the burgeoning blockchain sector, particularly for Decentralized Physical Infrastructure Networks (DePIN). This landmark decision signals a more defined regulatory path for projects utilizing tokens to incentivize real-world infrastructure development.
A Regulatory Landmark for DePIN Tokens
The SEC issued a significant "no-action letter," indicating it will not take enforcement action against tokens linked to DePIN projects, specifically citing the DoubleZero project's 2Z token. This rare move clarifies that programmatic transfers detailed by the DoubleZero Foundation, and its planned 2Z token, do not require registration under US securities laws and are not considered a class of equity securities. The core of this determination lies in recognizing that DePIN tokens function as incentives for contributing to and building infrastructure—such as DoubleZero's protocol for accessing underutilized private fiber links—rather than as investments promising profits derived from the efforts of others, which would typically trigger the Howey test.
Fostering Innovation and Defining Regulatory Scope
SEC Commissioner Hester Peirce underscored the profound implications of this decision, stating that the economic reality of DePIN projects fundamentally diverges from traditional capital-raising transactions within the SEC's primary regulatory purview. Peirce emphasized that the SEC's mandate is confined to overseeing securities markets, not regulating all economic activity. This "no-action" stance, she argued, fosters innovation by allowing cryptocurrency infrastructure providers to concentrate on building their networks instead of navigating intricate securities law nuances. Treating these functional DePIN tokens as securities, Peirce concluded, would stifle the growth of distributed service networks and prevent blockchain technology from achieving its full potential.
