SEC Grants Rare No-Action Relief for DePIN Tokens, Exempting Them from Securities Classification

The U.S. Securities and Exchange Commission has delivered a landmark decision for decentralized infrastructure projects, issuing a no-action letter confirming tokens tied to Decentralized Physical Infrastructure Networks (DePIN) will not be treated as securities. The September 29 determination allows DoubleZero Foundation to proceed with 2Z token transfers under specified conditions.

With DePIN tokens commanding a $33 billion market capitalization, the SEC's stance marks a significant shift in regulatory posture. The agency's Division of Corporation Finance concurred with DoubleZero's legal argument that these tokens function as network participation rewards rather than investment contracts.

Commissioner Hester Peirce underscored the distinction between DePIN tokens and traditional securities, noting their utility-focused design. This development occurs amid the TRUMP administration's push for crypto-friendly policies, potentially reshaping the regulatory landscape for blockchain-based infrastructure initiatives.