Catenaa, Wednesday, October 01, 2025-The SEC’s Division of Corporation Finance said it will not take enforcement action against DoubleZero if its 2Z token transfers follow programmatic, utility-based rules.
DoubleZero, a decentralized physical infrastructure network, provides faster routing for blockchain node operators using underutilized private fiber links.
The SEC clarified the 2Z token does not need registration as equity if transfers adhere to described conditions.
The decision reflects the SEC’s recognition of functional distinctions in decentralized infrastructure projects, where tokens serve as incentives for contributions rather than investment contracts under the Howey Test, Commissioner Hester Peirce noted.
Peirce emphasized that the SEC oversees securities markets, not all economic activity, and highlighted the role of markets in determining the success of token-based infrastructure projects.
The approval follows a four-month review and marks a milestone for US digital asset regulation, providing clarity for utility-driven crypto projects.
DoubleZero co-founder Austin Federa said the guidance allows compliant innovation while maintaining speed in project development.
The no-action letter precedes DoubleZero’s planned mainnet-beta launch later this week. The project previously raised $28 million in a token round led by Multicoin Capital and Dragonfly Capital, highlighting continued investor interest in decentralized infrastructure initiatives.
The ruling also reinforces the SEC’s recently launched Project Crypto initiative, which aims to collaborate with innovators on clear guidelines for token distribution and compliance. Analysts expect this decision to encourage additional utility-focused blockchain projects in the US.
