What an SEC No Action Letter Means for Solana DePIN Token DoubleZero

The U.S. Securities and Exchange Commission issued a “No Action” letter to DoubleZero on Monday, effectively congratulating the project’s 2Z token before its debut in Solana.

in statementThe committee said it “does not recommend it.” [an] The enforcement action against DoubleZero, established last year, uses tokens to encourage participants while building a high-performance fiber optic network for the blockchain.

The two-paragraph letter showed that, based on DoubleZero’s understanding, the 2Z token in the project was not similar to security. This was the first time the SEC has made such an evaluation over the years following the crackdown on token issuers under previous leadership.

Less than a week later, DoubleZero submitted 17 pages. letter The committee asks users on the network to consider “program forwarding.”

Former SEC Chairman Gary Gensler once Proposed “Everything other than Bitcoin” is crypto-speaking security, but the agency’s latest move shows that they believe 2Z doesn’t fall within that range.

“In reality, we create a safe port based on a set of supposed facts,” Graves said. Decryption. “This allows everyone to work a little more clearly.”

DoubleZero’s MainNet-Beta network is scheduled to be released on Friday. Users who donate resources to the network are set to earn 2Z as rewards, related to performance and reliability. Ultimately, the token holder can bet 2Z according to DoubleZero Website.

The project was co-founded by Austin Federa, who previously served as Strategic Director of the Solana Foundation. in statementhe said the decision “marks a major milestone for the US digital assets industry.”

Doublezero bills itself as a distributed physical infrastructure network; depin. This concept revolves around using blockchain to run and maintain a distributed network of physical hardware, such as sensors.

in statementthe Hester Perth Committee, at the heart of the committee-wide efforts to modernize securities regulations, explained how tokens can be used as different things compared to assets that the Depin Project normally regulates.

“These tokens do not promise any shares in the company or any promises of profit from the management efforts of others,” she said. “They are functional incentives designed to facilitate infrastructure build-out.”

The SEC has not previously issued an action letter to the cryptographic project, but Graves said the agency’s stance on Monday remains “very important.”

He recalled one non-action letter in 2019. This allowed a company called Turnkey Jet to provide tokens that could be used to clearly redeem on demand private jet flights.

“That’s not something the SEC really worries about,” he said. “However, anyone who purchases these tokens for private jet flights and operational turnkey jets can move forward with some degree of confidence that they don’t have a securities violation issue.”

SEC’s letter It highlighted several factors, including turnkey jet’s commitment to not funding the development of the platform through token sales, and turnkey jet’s commitment to limiting the ability of tokens to be transferred, and pinning marketing to the functionality of the token.