DePIN tokens are not considered securities and thus fall outside the SEC’s oversight. This was stated in a letter from the regulator addressed to the DoubleZero project.
Michael Seaman, Chief Counsel of the SEC’s Division of Corporation Finance, stated that he would not recommend the agency take action regarding the planned launch of the 2Z token. According to him, the coin does not require registration as a security under U.S. law.
In a statement, the DoubleZero team explained that its protocol provides blockchain systems access to “underutilized private fiber optic lines,” which are serviced by network participants. These participants will receive 2Z coins.
Austin Federa, co-founder of the project, described the SEC’s decision as proof of the potential for productive dialogue between regulators and crypto projects.
Today is a monumental day for crypto in America.
The @SECGov Division of Corporation Finance confirmed that the DoubleZero Networks’ native token (2Z) flows to contributors of the network are not subject to the registration requirements under the Securities Acts, and has issued… https://t.co/zefnuHDW2p
— Austin Federa | 🇺🇸 (@Austin_Federa) September 29, 2025
“The SEC’s verdict on the 2Z token model is a precedent important not only for DoubleZero. It proves that a legal framework can exist in America for tokens that not only comply with regulatory standards but are also a key element of blockchain systems that deliver real benefits,” he wrote.
The community reacted positively to the news. Solana founder Anatoly Yakovenko also joined in congratulating DoubleZero on its regulatory victory.
Yuuuge!!!
— toly 🇺🇸 (@aeyakovenko) September 29, 2025
Former Fox Business journalist Eleanor Terrett noted:
“In a broader context, this is the first no-action letter received from the SEC that provides some regulatory certainty regarding certain token distribution models.”
SEC’s Position
Commissioner Hester Peirce separately explained that the economic nature of DePIN projects fundamentally differs from capital-raising operations that fall under the regulator’s jurisdiction.
She described tokens in this segment as functional incentives to reward network participants, rather than shares in a company or promises of profit from others’ efforts. According to the official, such a regulatory stance will allow providers to “invest time in building infrastructure instead of analyzing the nuances of securities laws.”
“Congress created the SEC to oversee securities markets, not to regulate all economic activity,” Peirce emphasized.
The commissioner also warned that blockchain technologies will not reach their potential if regulators attempt to fit all types of activities into existing financial frameworks.
In July, the White House introduced recommendations for cryptocurrency regulation. Subsequently, the SEC launched the Project Crypto initiative, which analysts at Bernstein called “revolutionary.”
In August, Commission Chairman Paul Atkins announced the start of developing clear rules for the cryptocurrency industry. Later, he also commented on the status of digital assets, noting that only a few tokens are securities.