SEC Approves DoubleZero’s DePIN Tokens, Paving Way for Blockchain Innovation
The U.S.Securities and Exchange Commission (SEC) has given a green light to DoubleZero’s DePIN tokens. This decision means that blockchain-based rewards for infrastructure contributions may not need to follow U.S. securities laws.
The SEC issued a no-action letter, confirming that DoubleZero’s 2Z token doesn’t need registration as a security. This token rewards users for supporting the network, not for investment.
DePIN tokens, like 2Z, are different from traditional investments. They reward users for providing physical infrastructure, such as network connectivity.
Commissioner Hester peirce believes that treating these tokens as securities could harm innovation. She says they are “functional incentives” for growing decentralized networks, not investment vehicles.
DoubleZero’s legal team explained that 2Z tokens are used to pay network and resource providers. This makes them different from traditional investments. The team argues that these tokens are essential for the network’s operation.
DePIN projects are a new area of blockchain innovation. They use tokens to encourage users to share physical resources like storage or bandwidth. This structure separates them from traditional fundraising models.
DoubleZero’s general counsel, Mari Tomunen, agrees. She says the token’s value comes from network participants’ work, not from investment.
