SEC Grants Rare No-Action Letter for DoubleZero, Declares 2Z Not a Security

• SEC issues a no-action letter stating 2Z token is not a security under Howey.
• DePIN token model stands: programmatic transfers reward infrastructure work, not passive profit.
• The ruling offers legal clarity and may reshape utility token regulatory frameworks.

The U.S. Securities and Exchange Commission’s Division of Corporation Finance has made a clear determination on DoubleZero. In a no-action letter issued on September 30, the SEC stated that the DoubleZero 2Z token does not satisfy the Howey Test and will not be treated as a security. For the first time, a DePIN project has received formal recognition that its utility token can operate outside traditional securities law.

“Based on the facts presented, the Division will not recommend enforcement action to the Commission,” the no-action letter noted. For DoubleZero, this language marks not just a procedural…

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