SEC Gives Crypto a Wink: DoubleZero Dodges a Bullet, DePIN Gets Some Breathing Room!

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Ah, what a day for the fine folks at DoubleZero! The US Securities and Exchange Commission (SEC) has graciously extended a golden ticket, a “no-action” letter, blessing their token program, 2Z. How very generous! 🙄

In its formal missive dated September 29 (for those keeping track of such thrilling details), the SEC’s Division of Corporation Finance decided, after some thoughtful deliberation, that it wouldn’t be chasing down DoubleZero with any enforcement action. Phew, right? Talk about a near miss! 🎯

Now, what exactly is this DePIN thingamajig, you ask? DePIN projects, bless their hearts, use crypto tokens to coax businesses and individuals to share real-world resources. Imagine your data storage, wireless connectivity, or even energy becoming part of a distributed network, all while bypassing big, centralized corporate giants like Amazon Web Services and AT&T. A noble quest indeed! 💪

And hold onto your monocles-this no-action letter is a first of its kind, my friends! It’s like the SEC is finally deciding to acknowledge the digital world, or dare we say, warm up to it. A brave new world, indeed! 🌍

The SEC, in its infinite wisdom, proclaimed: “Our job is to engage with innovators in good faith, listen carefully, and apply our statutory mandate thoughtfully.” Well, isn’t that just heartwarming? 🙃 This letter means the SEC is letting the brave pioneers of infrastructure work on their grand projects, instead of worrying about the dizzying maze of securities laws. How considerate! 💼

DePIN: Not Your Average Securities Sale, Not Even Close!

But hold your applause! The press release made sure to clarify that DePIN projects are not, repeat, NOT selling securities. They don’t run like centralized corporate structures with the usual rigmarole. No, no, they run on open, peer-to-peer networks. The kind where people voluntarily offer up their resources-storage, bandwidth, energy, whatever tickles their fancy. It’s all about getting things done, faster and better. 🏃‍♂️💨

And, here’s the kicker-DePIN doesn’t hand out tokens to raise funds from greedy investors. Oh no, these tokens are distributed to those following the rules of the network. So no, the Howey Test does not apply here, thank you very much! If these tokens were treated like securities, it would, as you can imagine, put a serious damper on the growth of these innovative networks. Can you imagine? 😱

For those of you with a keen eye for nuance, the letter comes with a formal statement from Commissioner Hester M. Peirce, who boldly declared that the DoubleZero case is a test of the SEC’s ability to strike that delicate balance between oversight and nurturing innovation. No pressure! She rightly warns that overstepping Congress’ powers could lead to stifling the growth of DePIN networks. That’s what we call, folks, a tightrope walk. 🎪

Is the SEC Finally Warming Up to Crypto? 😏

Now, let’s talk about the SEC’s apparent shift. Since the days of President Donald Trump’s second term, the SEC has been making moves toward friendlier regulations for the crypto space. In fact, earlier this month, they unveiled a whole regulatory agenda for Spring 2025-yes, a whole spring of regulation! 🌸

And let’s not forget the launch of Project Crypto on September 10. The SEC is hell-bent on making the United States the global leader in digital assets, and SEC Chair Paul Atkins has been gallantly spreading this gospel on international stages. He even took his message to Paris, where he shared his vision of proactive regulation. America is going to be the “crypto capital of the world.” Sounds like a shiny new title, right? 🇺🇸💰

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2025-09-30 11:04