Michael Seaman, chief counsel for the SEC’s Division of Corporation Finance, confirmed that he would “not recommend enforcement action” for the planned launch of DoubleZero’s native token, known as 2Z. The letter represents one of the clearest signals yet that the
SEC under the Trump administration is easing its grip on the sector to attract blockchain innovation back to the United States.DoubleZero Token Deemed Outside Securities Scope
According to the SEC, the 2Z token does not qualify as a class of equity securities and therefore does not require registration under U.S. securities laws. DoubleZero’s protocol enables blockchain systems to tap into underutilized private fiber links contributed by network participants, who will be compensated with 2Z tokens.
“This milestone shows that U.S. founders can work with regulators to achieve clarity and still move quickly,” said Austin Federa, DoubleZero co-founder and former strategy lead at the Solana Foundation. General counsel Mari Tomunen added that the ruling provides a clear framework: “When the value of a token comes from the contributions of network participants, Howey simply does not apply.”
DePIN Market Regulatory Clarity: Innovation Over Overreach
SEC Commissioner Hester Peirce welcomed the decision, arguing that DePIN tokens reflect real economic activity rather than speculative securities. “Congress created the SEC to oversee securities markets, not to regulate all economic activity,” she said.
Peirce emphasized that these tokens are designed as incentives to encourage infrastructure buildout, compensating contributors for services rendered rather than promising profits tied to managerial efforts. Treating them as securities, she warned, would risk stifling the growth of decentralized service networks.
“Blockchain technology cannot achieve its full potential if regulators force all activities into existing financial frameworks,” Peirce noted.
Despite the regulatory clarity, the market reaction was muted. Data from CoinGecko showed DePIN-related tokens traded almost flat in the past 24 hours.
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