SEC's No-Action Letter to DoubleZero Boosts DePIN Infrastructure: Commissioner Peirce's Regulatory Breakthrough

The U.S. Securities and Exchange Commission has made a significant regulatory move by granting DoubleZero a no-action letter for its decentralized physical infrastructure network (DePIN). Commissioner Hester Peirce, long known as a crypto advocate within the SEC, emphasized this decision creates crucial regulatory space for blockchain development. The SEC staff agreed not to pursue registration complaints for tokens issued specifically for DoubleZero's DePIN operations, which Peirce suggests keeps the agency out of business where it doesn't belong. DePIN projects utilize distributed peer-to-peer networks where participants provide real-world services like storage, telecommunications bandwidth, and energy infrastructure. According to Peirce, these activities don't trigger the Supreme Court's Howey Test because tokens serve as compensation for work performed rather than investments expecting profit from others' efforts. DoubleZero co-founder Austin Federa noted this clarification allows founders to focus on building rather than regulatory uncertainty. The protocol compensates infrastructure providers with its native 2Z token, with Peirce warning that treating such tokens as securities would suppress distributed service networks' growth. The DeFi Education Fund's Amanda Tuminelli praised no-action letters as pragmatic tools for navigating crypto regulatory uncertainty, while SEC Chairman Paul Atkins continues establishing clear digital asset rules as his top priority.