SEC made it clear that it does not intend to take action against tokens related to decentralized physical infrastructure networks (DePIN) operating on blockchain.
In a no-action letter published on Monday, the chief legal counsel of the corporate finance department of the SEC, Michael Siman, stated that he would not recommend the commission to initiate proceedings against the DoubleZero project, which plans to launch its own DePIN token.
Separately, SEC commissioner Hester Peirce noted that “the economic essence of DePIN projects is fundamentally different from those capital-raising schemes that Congress has authorized us to regulate.”
Such a letter from the SEC is rare. It became another example of how the agency is easing pressure on the crypto market under the Trump administration, which is focused on simplifying rules to attract companies and projects to the US.
The DoubleZero token is not considered a security
According to Michael Siman, the data on token distribution provided by the DoubleZero Foundation does not require registration under US securities law. He also noted that the 2Z token is not registered as an equity asset class.
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In their letter, the DoubleZero team explained that the project’s protocol allows blockchain systems to connect to underutilized private fiber optic lines managed by different participants. These participants will receive and transmit 2Z tokens as part of the network’s operation.
“This is not just an important step for DoubleZero. It is proof that American founders and innovators can work with regulators, achieve clarity, and still move fast,” said project co-founder Austin Federa, who previously served as head of strategy at Solana Foundation.
Legal counsel DoubleZero Mari Tomunen added that the letter from the SEC underscores that launching the token is quite possible. According to her, if the value of the token is created by the actions of network participants, the Howey rule does not apply here.
The SEC will not “control all economic activity”
Hester Peirce believes that the SEC letter is a good reason to reconsider the role of regulators and remind ourselves where the boundaries of their influence lie.
“Congress did not create the SEC to interfere in all areas of the economy. Its job is to oversee the securities markets,” she said.
This approach gives developers the opportunity to focus on building real infrastructure, rather than dealing with legal complexities.
Attempting to regulate DePIN tokens could stifle the market
Hester Peirce explained that DePIN tokens are a working tool used to incentivize the development of infrastructure networks. They are not like shares and do not promise profits generated by someone else’s efforts.
“Such tokens are issued for specific work or services rendered. These are not investments where you expect someone else to do everything for you,” she emphasized.
According to her, if such projects are labeled as securities, it could seriously slow the development of decentralized services and scare off participants.
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Peirce also added that blockchain will not be able to develop freely if everything in it is forced into the framework of the old financial model.
Investors seem to have ignored the SEC statement. According to CoinGecko, DePIN-segment tokens lost about 2% over the past day.
