The US Securities and Exchange Commission has signed that it will not take the implementation action against tokens tied to the blockchain based on decentralized physical infrastructure networks (DEPIN).
To a no action Letter On Monday, Sec Division of Corporation Finance Chief Counsel Michael Seaman said Demin Project Doublezero.
SEC Commissioner Hester Peirce separately added That the “economic reality of depin projects differs fundamentally from the capital raising transactions that Congress charges this commission to regulating.”
Rare letter without action from the SEC is the latest instance of its crypto agency Rollback implementation Under the Trump administration, who has pledged to regulating regulation to attract US companies and projects.
Doublezero’s token is not a security
SEC Seaman said programmatic transfers that Doublezero Foundation detailed In a letter on Thursday does not require registration under us Security lawsAnd the planned 2z token “is not registered as a class of equity security.”
In its letter, Doublezero said its protocol provides to blockchain systems to access “underutilized private fiber links” managed by various contributors. Participants in the network are offered and the 2Z token will be sold.
“This is more than one milestone for the Doublezero – proof that US founders and constitutes can work with regulators to achieve clarity, and move fast,” Says Austin Federa, the co-founder of the Doublezero and former strategy for the Solana Foundation.
Doublezero General Counsel Mari Tomunen said the letter without the SEC action “underscores that there is a path to launch a token. When the value of the token is derived from another network participants’ work, Howey does not apply.”
No “SEC regulates all economic activity”
The SEC Peirce said the letter without action “offers a chance to contemplate how we, as regulators, can promote change without expanding our reach despite the mandate of Congress.”
“Congress created the Securities and Exchange Commission to handle security markets, not to organize all economic activities.”
He added the agency’s position allowed Crypto infrastructure Providers “spend their time on the weeds of infrastructure development, not deep in the knee in parsing the nuances of security laws.”
Related: US regulators have removed gossip with the SEC-CFTC combine, switch to cut off crypto’s ‘FUD’
The Policing Depin Token will prevent the market
Peirce said the tokens of DEPIN “are functional incentives designed to encourage infrastructure development” and not share with a company, or promise income from the efforts of others to see them being captured under security laws.
“These projects provide tokens in return for work conducted or services provided, rather than as investment with revenue expectation from entrepreneurs’ efforts or managing others,” he explained.
“Treating tokens such as security will prevent the growth of networks of shared service providers.”
Peirce said blockchain technology does not reach its full potential if regulators “force all activities to existing frameworks of regulation in the financial market.”
Depin tokens seem to have not reacted to the SEC’s decision, with Coingecko shows Tokens tied to the market segment lost 2% the previous day.
