The U.S. Securities and Exchange Commission (SEC) has issued a no‑action letter concerning the distribution of the 2Z coin by DoubleZero DePIN project. This decision is pivotal, indicating that transactions carried out according to DoubleZero’s directives will not attract any enforcement actions from the SEC. Additionally, the 2Z coin will not be mandated to register under the Securities Exchange Act as it is not deemed a securities class. Essentially, the move provides DoubleZero with a green light to continue its operations without fear of regulatory repercussions.
What Influenced the SEC’s Decision on DoubleZero?
The SEC’s decision was heavily influenced by data put forth by DoubleZero’s legal counsel. While clarifying its enforcement posture, the SEC reiterated that the ruling doesn’t hold legal authority but could be revisited under new circumstances. Commissioner Hester Peirce underscored the limited scope of the SEC, specifying that its primary focus is not on all economic operations but strictly on securities markets.
Hester Peirce shared her perspective, stating that digital assets deployed across various industries should not be automatically categorized as securities. “Technology‑driven projects warrant evaluation based on their market utility,” Peirce pointed out, further advocating for a rational approach to assessing such initiatives.
How Does DoubleZero Plan to Move Forward?
DoubleZero’s primary mission is to harness idle private fiber links to deliver direct, quicker routing for blockchain node handlers. This regulatory decision comes as a milestone for DoubleZero, enlightening the U.S. cryptocurrency landscape. The company’s co‑founder, Austin Federa, remarked that this decision sets a clear regulatory precedent, benefiting ventures to pursue inventive projects.
“This decision marks a turning point for the entire industry,” commented Austin Federa.
Following a $28 million capital raise in March led by Multicoin Capital and Dragonfly Capital, DoubleZero anticipates the release of its mainnet beta this week. The legal clarity provided bolsters the project’s growth ambitions, suggesting an optimistic future for the platform and its allies.
Will This Decision Impact Other DePIN Projects?
Absolutely, the implications transcend DoubleZero, potentially benefiting the wider DePIN market, which encompasses projects like Bittensor, Internet Computer, and others. It symbolizes a significant departure from the unpredictable regulatory interventions experienced in earlier U.S. administrations.
Key insights from the SEC’s resolution include:
- •Potential relaxation of regulatory measures for similar technological endeavors.
- •Encouragement for further investments and innovations in the DePIN sphere.
- •A shift towards a more consistent regulatory environment for crypto projects.
This recent development breathes new life into the cryptocurrency arena, igniting optimism for future DePIN ventures and fostering a progressive regulatory climate in the U.S.