SEC Boosts Crypto Industry: 2Z Token Not a Security
The U.S. Securities and Exchange Commission (SEC) has given a significant boost to the digital asset industry by providing clarity on the status of DoubleZero's 2Z token. The SEC's decision, communicated via a 'no action' letter, indicates that the 2Z token does not resemble a security. This is a first for the crypto industry, as the SEC has not issued such letters previously.
DoubleZero, a decentralized physical infrastructure network (DePIN) using blockchain to manage decentralized hardware networks, had sought this assessment. The company, co-founded by Austin Federa, former head of strategy at the Solana Foundation, submitted a 17-page letter to the SEC asking for its evaluation of 'programmatic transfers' to network users.
The SEC's decision comes ahead of DoubleZero's mainnet launch and the debut of the 2Z token, scheduled for Friday. The mainnet-beta network's launch will see users rewarded with 2Z tokens for contributing resources. This positive development follows DoubleZero's successful token round in March 2023, led by Multicoin Capital and Dragonfly, which raised $28 million in support of the project.
The SEC's decision to not treat DoubleZero's 2Z token as a security provides much-needed clarity for the digital asset industry. It paves the way for DoubleZero's mainnet launch and token debut, and sets a precedent for future crypto projects seeking similar assessments.
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