SEC Approves DoubleZero’s DePIN Tokens, Paving Way for Blockchain Innovation
The U.S. Securities and Exchange Commission (SEC) has given a green light to DoubleZero’s DePIN tokens. This decision confirms that these tokens don’t need to be registered as securities. it’s a big win for blockchain-based infrastructure projects.
The SEC’s no-action letter, issued on September 29, states that DoubleZero’s 2Z tokens won’t face enforcement. These tokens reward network participants for providing physical infrastructure. They are not investment vehicles, as explained by DoubleZero’s legal team.
DoubleZero’s 2Z tokens will be given to network providers for high-performance connectivity and resource providers for network calculations. This is different from customary securities, which promise profits from others’ efforts.
- DePIN tokens reward contributors for physical resources like storage or bandwidth.
- They are not shares of stock or investment promises.
- They are functional incentives for network growth.
Commissioner Hester Peirce believes that treating DePIN tokens as securities could hinder innovation. She says these tokens are essential for growing networks of distributed service providers.DoubleZero’s general counsel, Mari Tomunen, agrees, stating that the token’s value comes from network participants’ work.
This SEC decision is a significant step for blockchain innovation. It shows that DePIN tokens can operate outside traditional securities laws,fostering growth in decentralized networks.
