SEC Issues Historic ‘No-Action Letter’ to DoubleZero Ahead of Mainnet-Beta Launch

The Trump Administration’s pro-crypto SEC has made history, issuing its first-ever ‘No Action’ letter to DoubleZero, an ambitious infrastructure project setting its sights on reinventing the modern internet.

Directed primarily at DoubleZero, the SEC’s ‘No Action’ letter sets an optimistic precedent for Solana DePIN projects, providing greater regulatory clarity for blockchain-based incentive structures.

With a hard-earned seal of approval from the SEC, the DoubleZero network is now set for its October 2nd mainnet-beta launch.

DoubleZero Activities Are Not Securities Transactions

On September 29, the SEC issued global connectivity infrastructure provider DoubleZero a ‘No Action’ letter. Pursuant to four months of “contructive engagement” between the two parties, the SEC’s Division of Corporate Finance “will not recommend enforcement action” against DoubleZero on account of its economic distribution model.

Under the implications of the SEC’s ‘No Action’ letter, DoubleZero has essentially been cleared of any regulatory uncertainties that may have inhibited its operation. The letter confirms that $2Z tokens cannot be classed as ‘equity securities’, and deems that DoubleZero’s programmatic flows do not qualify as securities transactions.

Additionally, users and contributors can access and engage in the DoubleZero network without fear of committing unregulated securities transactions. DoubleZero co-founder Austin Federa asserted that the SEC’s letter marked a “monumental day for crypto in America”, celebrating the progressive approach to crypto regulation championed by SEC Chair Paul Atkins.

SEC’s No-Action Letter a Win for All DePIN Projects

Beyond illuminating the path for DoubleZero, the SEC’s ‘No Action’ letter could have resounding implications for DePIN protocols across the industry. Shedding further light on the SEC’s stance, Commissioner and Crypto Task Force Leader Hester Peirce opined that the economic models common in DePIN structures do not satisfy Howey Test criteria.

Peirce’s statement sets a precedent for the regulatory treatment of all DePIN protocols moving forward. Echoing Federa’s sentiments that “tokens are not inherently securities”, Peirce argues that rigorous enforcement would only stifle innovation and the expansion of distributed networks.

“Treating such tokens as securities would suppress the growth of networks of distributed providers of services.” - Hester Peirce, SEC Commissioner and Crypto Task Force Leader

By clearing the way for DoubleZero, the SEC is essentially giving DePIN protocols throughout the sector greater clarity and enabling them to operate without facing the existential threat of regulatory action.

2Z Mainnet Earmarked for October 2

Bouyed by the SEC’s greenlight, DoubleZero now powers towards its mainnet-beta launch on October 2nd. Reimaging the internet is no easy task, but testnet data suggests that contributors are eager to be a part of the change, with more validators adopting MoM since the testnet first launched in March.

DoubleZero’s native token, $2Z is slated to launch at 13:00 UTC on October 2nd. DoubleZero previously raised $28M in a private token sale, before distributing 1.5% of $2Z’s token supply to network contributors through a unique validator sale in April 2025.

Within the terms of the sale, US-based investors in the validator sale were given slightly different vesting terms than their international counterparts. While non-US purchasers will have unrestricted access to their tokens at launch, contributors from the US are subject to a 1-year cliff.

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