SEC Clears DePIN Tokens: DoubleZero’s 2Z Token Not a Security

The SEC has issued a rare no-action letter declaring DoubleZero’s DePIN token not a security, signaling a regulatory shift and sparking debate on the future of blockchain infrastructure projects.

Published by Ecem EFE

30 September 2025, 12:02 published Updated 30 September 2025, 12:02

SEC Says DePIN Tokens Aren’t Securities, Market Reacts Quietly

SEC Clears DePIN Tokens – The U.S. Securities and Exchange Commission (SEC) has indicated it will not pursue enforcement against tokens tied to Decentralized Physical Infrastructure Networks (DePIN), marking a notable moment in the regulatory landscape for crypto.

DoubleZero’s 2Z Token Clears SEC Hurdle

In a rare no-action letter, SEC Division of Corporation Finance chief counsel Michael Seaman confirmed that he would “not recommend enforcement action” regarding the planned launch of DoubleZero’s 2Z token. The SEC stated that the programmatic transfers outlined by the DoubleZero Foundation do not require registration under U.S. securities laws.

The DoubleZero protocol is designed to enable blockchain systems to access underutilized private fiber links contributed by network participants. These contributors would receive 2Z tokens in return.

Austin Federa, DoubleZero co-founder and former strategy lead at the Solana Foundation, hailed the decision as proof that U.S. innovators can collaborate with regulators to achieve clarity without stifling progress. DoubleZero general counsel Mari Tomunen added that the ruling demonstrates “there is a path to launch a token” when its value is derived from participant contributions rather than speculative profits.

SEC Clears DePIN Tokens: DoubleZero’s 2Z Token Not a Security — *Source:* *Austin Federa*

Hester Peirce: SEC Shouldn’t Regulate All Economic Activity

SEC Commissioner Hester Peirce welcomed the decision, stressing that the “economic reality of DePIN projects differs fundamentally” from traditional capital-raising transactions. She emphasized that the SEC was created to oversee securities markets, not “regulate all economic activity.”

Peirce argued that DePIN tokens function as incentives, compensating participants for work performed or services rendered, not as investments tied to others’ managerial efforts. She warned that treating such tokens as securities would suppress the growth of decentralized infrastructure providers.

Market Reaction Remains Muted

Despite the regulatory clarity, DePIN tokens showed little immediate price reaction. Data from CoinGecko revealed that tokens tied to the sector actually fell by 2% in the past 24 hours.

The SEC’s stance highlights a broader shift under the Trump administration, which has pledged regulatory easing to attract blockchain projects to the United States.