SEC Grants No-Action Letter to DoubleZero for DePIN Token Model
- The SEC granted a no-action letter to DoubleZero, allowing it to issue tokens for its decentralized physical infrastructure network (DePIN) without registration complaints.
- Commissioner Hester Peirce supports DePIN projects, emphasizing they don't fall under the SEC's jurisdiction as per the Howey Test since tokens are compensation for work or services, not investment profits.
- No-action letters help clarify SEC's enforcement intentions, providing guidance for compliance while fostering innovation within outlined boundaries.
- DoubleZero compensates infrastructure providers with its native token 2Z, aiming to incentivize network connectivity without being classified as securities, which could hinder growth.
- The SEC under Chairman Paul Atkins is actively establishing clear rules for digital assets, continuing initiatives started by Peirce's crypto task force.
More details on this development can be found in the SEC's statement and the blog post by the DoubleZero Foundation.