SEC Grants Landmark No-Action Letter to DoubleZero for DePIN Tokens

The U.S. Securities and Exchange Commission has issued its first no-action letter to DoubleZero, confirming that the company's 2Z tokens—used to incentivize participation in its decentralized physical infrastructure network—do not qualify as securities. The decision marks a pivotal moment for DePIN projects seeking regulatory clarity.

Commissioner Hester Peirce warned that forcing such utility tokens into securities frameworks could hamper innovation. The 2Z token's design as a network reward mechanism, rather than an investment vehicle, proved critical in the SEC's analysis under the Howey Test.

This precedent-setting MOVE comes as blockchain-based infrastructure projects gain traction globally. The SEC's position suggests a growing recognition of token utility beyond traditional investment contracts, potentially opening new pathways for decentralized network development.