Key takeaways
What does this green light from the SEC mean for the DEPIN sector?
They can encourage contributions to DEPIN networks without worrying about regulatory risks.
How has the market responded?
The market size of this sector increased by 3% to reach $34 billion.
The US Securities and Exchange Commission (SEC) has given DEPIN (Decentralized Physical Infrastructure Networks) one of its clearest signals yet.
In “no action” letterThe regulator said it would not “recommend enforcement action” against the distribution of Double Zero’s 2Z token. The agency added,
“Programmatic transfers made in the manner and under the circumstances described in your letter are not registered under Section 5 of the Securities Act.”
Source: SEC
Double Zero runs low-latency DEPIN that leverages underutilized physical fiber to help blockchain overcome frictions in traditional networks.
In return, the company plans to allocate its native token, 2Z, to participants who share their resources to the network.
DEPIN tokens bounce on clarity
In response to the update, Commissioner Hester Peirce clarified that DEPIN tokens are not investment contracts but “incentives” to help build the network.
Pointing out that this category falls outside the scope of the securities law He added,
“Treating such tokens as securities would inhibit the growth of DSP networks.”
Pearce warned that markets should determine the success of these blockchain projects, not regulatory bodies.
Double Zero welcomed clarity, Confirming which,
“Shareholders can receive 2Z without fear of being caught in an unregulated securities transaction.”
Double Zero is currently in the testnet, with Solana [SOL], but [SUI]and other series and could hit the mainnet soon. However, regulatory clarity has raised the profile of the sector.
A sector-wide march
Zibek network [ZBCN]Helium Internet of Things [IOT] And dynax [DNX] It topped the daily gainers list with double-digit increases over the past 24 hours. The total size of the sector increased by 3% to reach $34 billion.
Source: CoinMarketCap
This is the third category of tokens that the SEC has cleared as non-securities. In March, the regulator Green light Proof of Work (PoW) or mining systems e.g Bitcoin [BTC] and Dogecoin [DOGE] As it is not security.
Likewise, in May, the Securities and Exchange Commission (SEC). He said Proof of Stake (PoS) chains e.g Ethereum[ETH], Solana [SOL] and Liquid Mortgage Codes Like JitoSOL it is not security.
