Is This SEC No-Action Letter a Massive Win for DePin Projects Like Helium?

Is This SEC No-Action Letter a Massive Win for DePin Projects Like Helium?

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Regulations are crucial in the cryptocurrency space. Without supportive government frameworks, navigating the landscape becomes extremely difficult. In 2025, with Donald Trump in the White House, the United States is leading the charge in terms of regulatory clarity. So far, DeFi and tokenization projects have been leading the way in this space through the GENIUS Code, for example. However, DePin’s initiatives are beginning to make equally convincing strides.

This is a huge win, especially since the core promise of cryptocurrencies is to enhance efficiency and empower end users with greater control. Wins for projects working to achieve these goals are essential. According to Koenjiku, DePin is a thriving cryptocurrency sub-sector that oversees over $16.9 billion in assets. Here are some of them Best cryptocurrencies to buy Includes Bittensor, Render, and Filecoin. However, many of Deepen’s startup projects are built explicitly for Solana, as recent regulatory developments could profoundly impact the sector’s trajectory.

(Source: Koenjiku)

At the heart of this is DoubleZero, a DePin platform that aims to simplify blockchain consensus with a heavy focus on Solana. The team is focused on enhancing Solana’s scalability by reducing data migration between validators, potentially increasing throughput to 1 million TPS. At its core, DoubleZero integrates untapped private fiber-optic links into a network to power decentralized applications.

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DoubleZero’s ambitions are bold, but the team knows that regulatory compliance, especially in the US, is non-negotiable.

In a rare show of restraint, the SEC issued a no-action letter to DoubleZero on September 29, effectively approving the project’s programmatic distribution of 2Z tokens.

In response to a query from DoubleZero, the agency’s Corporate Finance Division stated that it would not recommend enforcement action against the project or its smart contracts that facilitate 2Z token transfers; Provided that the facts remain unchanged and the token functions only as an auxiliary tool.

More importantly, the SEC determined that 2Z tokens do not meet the Howey Test, the Supreme Court’s standard for identifying investment contracts (and thus securities) versus commodities. Logic? 2Z Rewards are based on the efforts of participants, not on DoubleZero’s promotional activities.

Like many symbols, Including those listed on Binance,2Z will motivate network participants. The SEC held that these tokens are not securities under federal law. The ruling comes ahead of the launch of the DoubleZero mainnet beta on October 2.

Validators must pay 2Z per connection to join the network, while service providers receive algorithmic rewards based on contributions such as bandwidth and latency improvements. A share of the fees is burned to combat inflation, and holders have the option to stake the 2Z for additional returns.

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The cryptocurrency community has warmly embraced the no-action rhetoric. It makes sense: These letters are specific, non-binding opinions of employees and not formal rules, but they serve as valuable guides for compliance.

DoubleZero’s legal counsel, Cooley LLP, called the SEC’s response “a major milestone in the regulation of crypto assets” that could advance “a potential path for cryptocurrency projects to compliantly distribute tokens in the United States.”

Hester Peirce, commissioner of the cryptocurrency-friendly Securities and Exchange Commission, echoed this sentiment, noting that the guidance paves the way for further experimentation. She points out that “markets, not financial regulators, should determine the success” of cryptocurrency projects.

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Earlier this year, the agency filed a lawsuit against Helium developer, Nova Labs, claiming that its original HNT token was an unregistered security.

However, by April 2025, the SEC had dismissed the case, and Nova Labs agreed to a modest civil fine of $200,000, far less than the $42 million originally requested.

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Read the original story Is the SEC’s no-action letter a big win for DePin projects like helium? by Dalmas Ngitich On 99bitcoins.com

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