The Division of Corporate Finance of the U.S. Securities and Exchange Commission (SEC) has made a historic decision regarding the decentralized physical infrastructure network (DePIN) project DoubleZero. The agency issued a "Letter of No Action" for the company's 2Z token, declaring that utility token transfers will not be considered securities transactions within the specified limits.
Accordingly, DoubleZero's 2Z token will not be classified as a security and will not be subject to registration. However, the SEC emphasized that the decision was made solely based on the information DoubleZero provided and that different circumstances could lead to different outcomes.
SEC Issues "Non-Intervention" Letter
This decision marks the SEC's first official "non-intervention" stance towards the crypto industry. Previously, the SEC considered most altcoins to be securities, and with the new administration, it has begun to adopt a more innovative approach. The DoubleZero decision also demonstrates that the agency has begun working more closely with the industry as part of its "Project Crypto" initiative. DoubleZero aims to offer blockchain node operators faster and more direct connections than the public internet via its high-performance fiber network. The system works by integrating unused fiber lines into the network. Participants are rewarded with 2Z tokens for the service they provide.
Hester Peirce: "The market must decide"
SEC Commissioner Hester Peirce viewed the published letter as a step toward fostering innovation. Peirce emphasized that the SEC's purpose is not to regulate all economic activity, but to oversee securities markets:
"DePIN projects organize real-world services like storage, bandwidth, or energy into distributed structures. Here, tokens serve as rewards that incentivize infrastructure deployment rather than serve as investment contracts. Blockchain technology cannot reach its full potential if we try to squeeze all activities into existing financial regulations."
Peirce stated that markets should determine the success of such initiatives.
The DoubleZero Foundation emphasized that this decision, which follows a four-month review process, represents a significant turning point for the US digital asset sector. Foundation co-founder Austin Federa commented on the development:
“This is a milestone not only for DoubleZero, but for all US crypto entrepreneurs. The SEC has recognized the functional nature of the 2Z token, opening up space for compliant, service-oriented innovation. This decision demonstrates that innovation can remain in the United States and grow unabated.”
Dual Listing from Binance
Immediately following this critical regulatory development, Binance, the world's largest cryptocurrency exchange, made a significant announcement. The company announced that it will list DoubleZero's 2Z token on futures with up to 50x leverage. 2Z will be available for spot trading on Binance Alpha on October 2, 2025, and for leveraged trading on Binance Futures on the same day. DoubleZero also announced that the mainnet (beta) will launch this week. The project completed a $28 million token sale round led by Multicoin Capital and Dragonfly Capital in March.
