SEC Commissioner Hester Peirce issued statements declaring the SEC’s support for innovative, new projects such as the Decentralized Physical Infrastructure Network (DePIN) and Real World Asset Tokenization (RWA). This comes amid the committee’s focus on tokenization and addressing security concerns about DoubleZero premium distributions.
SEC Commissioner Hester Peirce talks about the DePIN innovation
Commenting on Decentralized Physical Infrastructure Network (DePIN) technology, SEC Commissioner Pierce said It is a new way of organizing human behavior and capital resources. DePIN projects collaborate with participants to deliver real-world capabilities, such as storage, telecommunications bandwidth, mapping, or energy, through open, distributed peer-to-peer networks.
Today’s no-action letter exemplifies how playing this role can help infrastructure providers spend their time building infrastructure, not analyzing the nuances of securities laws.
This comes amid a no-action letter from the SEC’s Division of Corporate Finance regarding the DoubleZero token distribution. The Commission aims to promote DePIN projects such as DoubleZero and not hinder innovative projects with enforcement actions. DePIN tokens are not securities, but functional incentives.
DePIN projects do not satisfy Amateur test. Projects allocate tokens as compensation for work or services provided, rather than investments with the expectation of profit. The projects also do not sell or distribute tokens to finance development from investors seeking investment returns.
DePIN tokens like Bittensor (TAO), RENDER, Filecoin (FIL), and The Graph (GRT), among others, are best taking advantage of the latest pro-SEC crypto adoption approach.
Securities and Exchange Commission on RWA Tokenization Promotion
Hester Pierce also spoke about the SEC’s RWA tokenization efforts. The committee expressed its support for projects that encode RWA. It’s worth noting that the SEC’s cryptocurrency task force has met with several companies, including Wintermute, as the agency works to make this happen. Regulation of token securities.
these The most important RWA encryption projects You will benefit from the SEC’s recent stance on promoting tokenization and providing a regulated environment for projects.
“We are willing to work with people who want to convert cryptocurrencies into tokens, and we encourage them to come and talk to us,” Hester Pearce said while speaking virtually at the Digital Assets Summit in Singapore.
