{"id":50483,"date":"2025-10-01T12:17:04","date_gmt":"2025-10-01T12:17:04","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=50483"},"modified":"2025-10-01T12:17:04","modified_gmt":"2025-10-01T12:17:04","slug":"is-this-sec-no-action-letter-a-massive-win-for-depin-projects-like-helium","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=50483","title":{"rendered":"Is This SEC No-Action Letter a Massive Win for DePin Projects Like Helium?"},"content":{"rendered":"<div>\n<p><span data-preserver-spaces=\"true\">Regulations are crucial in crypto. Without supportive government frameworks, navigating the landscape becomes extraordinarily challenging. In 2025, with Donald Trump in the White House, the U.S. is leading the charge as far as regulatory clarity is concerned. So far, DeFi and tokenization projects have been leading the charge via the GENIUS Act, for example. However, DePin initiatives are starting to make equally compelling strides.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">This is a huge win, especially since crypto\u2019s core promise is to boost efficiency and empower end users with greater control. Victories for projects that advance these goals are essential. According to Coingecko, DePin is a burgeoning crypto subsector overseeing over $16.9Bn in assets. Herein, some of the <\/span><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/best-crypto-to-buy\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\"><span data-preserver-spaces=\"true\">best cryptos to buy<\/span><\/a><span data-preserver-spaces=\"true\"> include Bittensor, Render, and Filecoin. Yet many emerging DePin projects are explicitly built for Solana, where recent regulatory developments could profoundly influence the sector\u2019s trajectory.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-290066 size-full\" src=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-01T120208.894.png\" alt=\"SEC no-action letter for DoubleZero is a massive win for DePin projects, including Helium. The agency notes that 2Z tokens are not securities\" width=\"1402\" height=\"786\" srcset=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-01T120208.894.png 1402w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-01T120208.894-300x168.png 300w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-01T120208.894-1024x574.png 1024w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-01T120208.894-768x431.png 768w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-01T120208.894-50x28.png 50w\" sizes=\"auto, (max-width: 1402px) 100vw, 1402px\"><\/p>\n<p><span data-preserver-spaces=\"true\">(Source: <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.coingecko.com\/en\/categories\/depin\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">Coingecko<\/span><\/a><span data-preserver-spaces=\"true\">)<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">At the center of this is DoubleZero, a DePin platform aiming to streamline blockchain consensus with a sharp focus on Solana. The team is laser-focused on enhancing Solana\u2019s scalability by minimizing data travel between validators, potentially pushing throughput to 1M TPS. At its core, DoubleZero weaves together underutilized private fiber-optic links into a network for powering dapps.<\/span><\/p>\n<p><iframe loading=\"lazy\" title=\"Meet Austin Federa: Co-Founder of DoubleZero\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/rF2oAeK7WFY?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><strong><span data-preserver-spaces=\"true\">DISCOVER: <\/span><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/next-100x-crypto\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\"><span data-preserver-spaces=\"true\">10+ Next Crypto to 100X In 2025<\/span><\/a><\/strong><\/p>\n<h2><span data-preserver-spaces=\"true\">DoubleZero, the SEC, and the No-Action Letter<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">DoubleZero\u2019s ambitions are bold, but the team knows that regulatory compliance, particularly in the United States, is non-negotiable.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In a rare show of restraint, the SEC <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.sec.gov\/rules-regulations\/no-action-interpretive-exemptive-letters\/division-corporation-finance-no-action\/doublezero-092925\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">issued<\/span><\/a><span data-preserver-spaces=\"true\"> a no-action letter to DoubleZero on September 29, effectively approving the project\u2019s programmatic distribution of 2Z tokens. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Responding to an <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.sec.gov\/files\/corpfin\/no-action\/doublezero-final-conformed-092625.pdf\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">inquiry<\/span><\/a><span data-preserver-spaces=\"true\"> from DoubleZero, the agency\u2019s Division of Corporation Finance stated it would not recommend enforcement action against the project or its smart contracts facilitating 2Z token transfers; provided the facts remain unchanged and the token functions purely as a utility.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Proud to share that the <a href=\"https:\/\/twitter.com\/SECGov?ref_src=twsrc%5Etfw\" rel=\"nofollow\" target=\"_blank\">@SECGov<\/a> has issued <a href=\"https:\/\/twitter.com\/doublezero?ref_src=twsrc%5Etfw\" rel=\"nofollow\" target=\"_blank\">@DoubleZero<\/a> a No-Action Letter for 2Z. <img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/16.0.1\/72x72\/1f985.png\" alt=\"\ud83e\udd85\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"><img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/16.0.1\/72x72\/1f1fa-1f1f8.png\" alt=\"\ud83c\uddfa\ud83c\uddf8\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"><\/p>\n<p>The first-of-its-kind No-Action Letter gives us confidence that 2Z does not have to register as a class of \u201cequity securities\u201d and that programmatic flows of 2Z on the DoubleZero network are\u2026 <a href=\"https:\/\/t.co\/gSgiN6tpQj\" rel=\"nofollow\" target=\"_blank\">pic.twitter.com\/gSgiN6tpQj<\/a><\/p>\n<p>\u2014 DoubleZero IBRL\/acc (@doublezero) <a href=\"https:\/\/twitter.com\/doublezero\/status\/1972762875916869914?ref_src=twsrc%5Etfw\" rel=\"nofollow\" target=\"_blank\">September 29, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span data-preserver-spaces=\"true\">Critically, the SEC determined that 2Z tokens do not meet the Howey Test, the Supreme Court standard for identifying investment contracts (and thus securities) versus commodities. The reasoning? Rewards for 2Z are driven by participants\u2019 efforts, not DoubleZero\u2019s promotional activities.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Like many tokens, <\/span><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/new-binance-listings\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\"><span data-preserver-spaces=\"true\">including those listed on Binance<\/span><\/a><span data-preserver-spaces=\"true\">, 2Z will incentivize network participants. The SEC opined that these tokens are not securities under federal law. This ruling arrives just ahead of DoubleZero\u2019s mainnet beta launch on October 2.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Validators must pay in 2Z for connectivity to join the network, while providers earn algorithmic rewards based on contributions such as bandwidth and latency enhancements. A share of fees is burned to combat inflation, and holders have the option to stake 2Z for additional yields.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">DISCOVER: <\/span><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/high-risk-high-reward-crypto\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\"><span data-preserver-spaces=\"true\">9+ Best High-Risk, High-Reward Crypto to Buy in 2025<\/span><\/a><\/strong><\/p>\n<h2><span data-preserver-spaces=\"true\">A Breakthrough for DePin? What It Means For Platforms Like Helium<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The crypto community has warmly embraced the no-action letter. It makes sense: These letters are fact-specific, non-binding staff opinions rather than formal rules, but serve as valuable compliance guideposts.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">DoubleZero\u2019s legal counsel, Cooley LLP, <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.cooley.com\/news\/coverage\/2025\/2025-09-29-doublezero-secures-no-action-relief-from-sec\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">described<\/span><\/a><span data-preserver-spaces=\"true\"> the SEC\u2019s response as a \u201cmajor milestone in the regulation of crypto assets\u201d that could foster \u201ca potential path for crypto projects to compliantly distribute tokens in the United States.\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Crypto-friendly SEC Commissioner Hester Peirce <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.sec.gov\/newsroom\/speeches-statements\/peirce-092925-deep-statement-doublezero-no-action-letter\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">echoed<\/span><\/a><span data-preserver-spaces=\"true\"> this sentiment, noting that the guidance paves the way for further experimentation. She notes that \u201cmarkets, not financial regulators, should determine the success\u201d of crypto projects.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">On X, Helium, a decentralized wireless network, hailed the SEC\u2019s stance on DoubleZero\u2019s token as a \u201c<a class=\"general-link\" href=\"https:\/\/twitter.com\/helium\/status\/1973103193488826817\" target=\"_blank\" rel=\"noopener nofollow\">great day<\/a>\u201d for DePin. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Earlier this year, the agency had sued Helium\u2019s developer, Nova Labs, claiming its native HNT token was an unregistered security. <\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Today marks a major win for Helium and The People\u2019s Network! The SEC has agreed to dismiss its unregistered securities claims with prejudice. Helium Hotspots and the distribution of HNT, MOBILE, and IOT through the Helium Network are not securities. It also means that the SEC\u2026 <a href=\"https:\/\/t.co\/vJSBAFht8T\" rel=\"nofollow\" target=\"_blank\">pic.twitter.com\/vJSBAFht8T<\/a><\/p>\n<p>\u2014 Helium<img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/16.0.1\/72x72\/1f388.png\" alt=\"\ud83c\udf88\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"> (@helium) <a href=\"https:\/\/twitter.com\/helium\/status\/1910420692597952746?ref_src=twsrc%5Etfw\" rel=\"nofollow\" target=\"_blank\">April 10, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span data-preserver-spaces=\"true\">However, by April 2025, the SEC had dismissed the case, and Nova Labs agreed to a modest $200,000 civil penalty, far short of the $42M originally sought.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">DISCOVER: <\/span><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/next-1000x-crypto\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\"><span data-preserver-spaces=\"true\">Next 1000X Crypto \u2013 Here\u2019s 10+ Crypto Tokens That Can Hit 1000x This Year<\/span><\/a><\/strong><\/p>\n<div class=\"nnbtc-key-takeaways\">\n<h2 class=\"nnbtc-key-takeaways__title\">SEC No-Action Letter Massive Win for DePin Projects Like Helium?<\/h2>\n<ul class=\"nnbtc-key-takeaways__list\">\n<li class=\"nnbtc-key-takeaways__list-item\">\n         <span data-preserver-spaces=\"true\">DoubleZero aims to improve data travel time between Solana validators<\/span><span data-preserver-spaces=\"true\">\u00a0<\/span>    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n         <span data-preserver-spaces=\"true\">Plans to issue 2Z tokens via programmatic transfers<\/span><span data-preserver-spaces=\"true\">\u00a0<\/span>    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n         <span data-preserver-spaces=\"true\">SEC staff issues a no-action letter against 2Z<\/span><span data-preserver-spaces=\"true\">\u00a0<\/span>    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n         <span data-preserver-spaces=\"true\">Will this boost DePin innovation?<\/span><span data-preserver-spaces=\"true\">\u00a0<\/span>    <\/li>\n<\/ul><\/div>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/altcoins\/is-this-sec-no-action-letter-a-massive-win-for-depin-projects-like-helium\/\">Is This SEC No-Action Letter a Massive Win for DePin Projects Like Helium?<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Regulations are crucial in crypto. Without supportive government frameworks, navigating the landscape becomes extraordinarily challenging. In 2025, with Donald Trump in the White House, the U.S. is leading the charge as far as regulatory clarity is concerned. So far, DeFi and tokenization projects have been leading the charge via the GENIUS Act, for example. However, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-50483","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/50483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=50483"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/50483\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=50483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=50483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=50483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}