Decentralized Physical Infrastructure Network (DePIN) tokens saw a 43% increase in trading volume over the past 24 hours, following the issuance of a no-action letter by the US Securities and Exchange Commission (DePIN) on Monday to DoubleZero, a DePIN project.
The US Securities and Exchange Commission issued a no-action letter regarding the DoubleZero token 2Z
DoubleZero, a DePIN project focused on improving the transfer of information between blockchain nodes over fiber optic networks, has secured a No-action letter From the US Securities and Exchange Commission on Monday, where the Division of Corporate Finance advised against taking enforcement action.
The SEC’s support stems from automated transfers on the DoubleZero network, which are not subject to Section 5 of the Securities Act, and the 2Z symbol is not a common stock security under Section 12(g) of the Exchange Act.
in Additional statement The SEC explains that DePIN projects distribute tokens based on user or contributor activity in the network, rather than selling or distributing tokens to investors looking for investment returns with further development of the network. This is the main feature that helps DePIN tokens pass the Howey Test, which became popular in the cryptocurrency community during Ripple’s legal battle against the SEC.
Moreover, a positive regulatory environment can boost potential corporate investments in DePIN projects.
After issuing the no-action letter, DoubleZero announced that its 2Z token will be available on Binance Wallet on Thursday.
With the green light from the SEC for the project, trading volume for DePIN tokens has risen by 43% over the past 24 hours, which may indicate an increase in trader interest. On the other hand, the market capitalization remained constant at $14.64 billion during the same period.
DePIN market data. Source: Deepenscan.
Validating the increase in volume, CoinGlass data reveals that trading volumes for Bittensor (TAO), Internet Computer (ICP), and Filecoin (FIL) rose by 24%, 20%, and 31% in the past 24 hours, respectively.
DePIN Derivatives Data. Source: Coinglass
