CMC News

SEC Approves Token Distribution for DePIN Project

The Securities and Exchange Commission has issued guidance stating it will not pursue enforcement against #DoubleZero regarding distribution of its $2Z token.

The Division of Corporation Finance delivered the no-action letter specifying that programmatic token transfers conducted as described by DoubleZero fall outside enforcement priorities. The relief applies provided $2Z avoids registration as an equity security class.

DoubleZero operates fiber network infrastructure that connects #blockchain node operators through underutilized private links. The system aims to deliver faster routing compared to standard public internet pathways.

Commissioner Hester Peirce stated the decision demonstrates how the #SEC can support innovation while respecting congressional mandates. She emphasized that the agency was created to oversee securities markets rather than regulate all economic activity.

Peirce characterized #DePIN initiatives as projects coordinating participants to deliver real-world infrastructure through distributed systems. Tokens serve as compensation for work performed rather than investment vehicles under securities law frameworks.

Austin Federa, who co-founded DoubleZero, called the outcome evidence that U.S. innovators can collaborate with regulators while maintaining development momentum. Recognition of $2Z's utility function creates space for compliant domestic innovation.

The #regulatory clarity arrives as DoubleZero prepares its mainnet-beta launch, expected within days. The project secured $28 million in March through a token round led by Multicoin Capital and Dragonfly Capital.

The Foundation characterized the decision as a significant milestone following a four-month review process. The guidance establishes that functional tokens tied to infrastructure participation differ from traditional fundraising mechanisms.