The U.S. SEC's Division of Corporation Finance has issued a no-action letter to DoubleZero, a decentralized physical infrastructure network (DePIN), over its 2Z token. The SEC stated it will not suggest enforcement action if 2Z token transfers follow the outlined programming approach and the token is not registered as an equity security.
DoubleZero exploits unused private fiber networks to provide quicker routing to blockchain node operators. The SEC stressed that its purpose is to regulate securities markets, not all economic activities.
According to Commissioner Hester Peirce, DePIN tokens, such as 2Z, are utility incentives for infrastructure provision rather than investment contracts under the Howey Test. DoubleZero hailed the letter as a significant milestone in US digital asset legislation, giving additional clarity for compliant, utility-driven crypto initiatives. This judgment supports the SEC's Project Crypto effort, which aims to encourage industry participation on clear principles.
DoubleZero plans to launch its mainnet beta soon, following a $28 million funding round headed by Multicoin Capital and Dragonfly Capital. The no-action letter demonstrates rising regulatory support for real-world infrastructure tokens while also paving the road for legal innovation.
