SEC Grants No-Action Letter to DoubleZero, Boosting DePIN and Crypto Innovation

The U.S. Securities and Exchange Commission (SEC) has signaled a major step forward for the crypto industry by issuing a no-action letter to DoubleZero, a decentralized physical infrastructure network (DePIN) startup. The decision reassures blockchain innovators that certain token-based activities will not face enforcement, provided they remain within the outlined boundaries.

SEC Commissioner Hester Peirce, long regarded as a crypto advocate, highlighted that projects like DoubleZero do not trigger the Supreme Court’s Howey Test because tokens are earned for work or services rendered rather than purchased with expectations of profit from others’ efforts. She emphasized that forcing blockchain into traditional financial frameworks could stifle innovation, while decentralized models enable participants to provide real-world services such as storage, mapping, bandwidth, and energy.

DoubleZero’s native token, 2Z, is designed to incentivize companies with excess network infrastructure, encouraging growth in distributed service networks. Co-founder Austin Federa praised the SEC’s decision, saying it reduces the legal uncertainty that has historically drained time and resources from blockchain startups. Instead, founders can now focus on building decentralized ecosystems without being hindered by unnecessary securities classifications.

The no-action letter also drew support from the DeFi community. Amanda Tuminelli of the DeFi Education Fund called the move a constructive approach to regulatory uncertainty, showing that productive engagement with regulators is possible.

This decision comes as the SEC, under Chairman Paul Atkins, intensifies its efforts to establish clear rules for digital assets. Peirce, who previously led the agency’s crypto task force, has long championed clearer policies to support blockchain innovation. With this move, the SEC demonstrates its willingness to adapt and foster growth in decentralized technologies, while clarifying the line between securities and utility tokens.

By offering regulatory clarity, the SEC has given blockchain developers and investors renewed confidence, potentially setting the stage for wider adoption of decentralized infrastructure solutions.