SEC's Bow to DoubleZero Carries Major Weight for Decentralized Infrastructure: Peirce

The U.S. Securities and Exchange Commission (SEC) has issued a no-action letter to DoubleZero, allowing it to proceed with the distribution of its network's native tokens without regulatory concerns. This decision is significant for decentralized physical infrastructure networks (DePIN), as it indicates a more favorable regulatory stance toward blockchain projects that incentivize real-world capabilities through distributed networks. Commissioner Hester Peirce highlighted that the SEC's approach avoids unnecessary intervention in areas where it should not be involved, emphasizing that DePIN activities do not qualify as investment contracts under the Howey Test. By compensating participants with tokens for services rendered rather than for profit expectations, the SEC aims to clarify the regulatory landscape surrounding token distributions. The approval drew praise from decentralized finance advocates, signaling a pragmatic approach to regulatory uncertainties in the crypto space. The regulatory environment remains dynamic, with a push from SEC leadership for clear rules that address the needs of the digital asset sector.

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