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 overseeing 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.
discovers: 10+ Crypto Coming to 100X in 2025
DoubleZero, the SEC, and the No Action Letter
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 Securities and Exchange Commission Issued A no-action letter to DoubleZero on September 29, effectively approving the project’s programmatic distribution of 2Z tokens.
Reply to A a question From DoubleZero, the agency’s corporate finance division said 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.
Proud to share that @SECGov issued @DoubleZero No-action letter for 2Z. 🦅🇺🇸
This first-of-its-kind no-action letter gives us confidence that 2Z does not have to register as a class of “equity securities” and that automated flows of 2Z on the DoubleZero network… pic.twitter.com/gSgiN6tpQj
— DoubleZero IBRL/acc (@doublezero) September 29, 2025
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.
discovers: 9+ Best High-Risk-Reward Cryptocurrencies to Buy in 2025
Hack for DePin? What it means for platforms like helium
The cryptocurrency community has warmly embraced the no-action rhetoric. It makes sense: These letters are specific, non-binding opinions of employees and are not official rules, but they serve as valuable guidelines for compliance.
DoubleZero’s legal counsel, Cooley LLP, described The SEC’s response is considered 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, the crypto-friendly SEC commissioner Repeat This feeling, noting that the directions paves the way for further experiments. She points out that “markets, not financial regulators, should determine the success” of cryptocurrency projects.
On X, Helium Network, a decentralized wireless network, praised the SEC’s stance on the DoubleZero token as “Great day“Debin.
Earlier this year, the agency filed a lawsuit against Helium developer, Nova Labs, claiming that its original HNT token was an unregistered security.
Today marks a big win for Helium and The People’s Network! The SEC agreed to dismiss its claims regarding unregistered securities with prejudice. Helium Connections and the distribution of HNT, MOBILE and IOT through the Helium Network are not securities. This also means that the SEC… pic.twitter.com/vJSBAFht8T
– Helium🎈 (@helium) April 10, 2025
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.
discovers: Next 1000X Crypto – Here are 10+ crypto tokens that could reach 1000X this year
SEC No-Action Letter A Massive Win for DePin Projects Like Helium?
-
DoubleZero aims to improve data latency between Solana validators -
Plan to issue 2Z tokens via automated transfers -
The SEC staff issued a no-action letter against 2Z -
Will this boost DePin’s innovation?
Why you can trust 99Bitcoins
99Bitcoin was founded in 2013, and its team members have been crypto experts since the early days of Bitcoin.
90hr+
Weekly research
100k+
Monthly readers
50+
Expert contributors
2000+
Crypto projects reviewed
Follow 99Bitcoins on your Google News Feed
Get the latest updates, trends and insights delivered right to your fingertips. Subscribe now!
Subscribe now 
