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DoubleZero Launches High-Speed DePIN, SEC Clears Native Token

DoubleZero Launches High-Speed Blockchain Network and Receives SEC Approval for Utility Token

  • DoubleZero launched its mainnet-beta, featuring a high-speed fiber-optic network for blockchain transactions.
  • The platform introduced a public utility token that powers its decentralized network.
  • The system runs over 70 direct connections between 25 locations to cut latency and improve performance.
  • The U.S. SEC issued a no-action letter, stating DoubleZero’s Depin tokens do not fall under securities regulation.
  • The decision marks a shift from past regulatory positions and clears DoubleZero’s token for public launch.

DoubleZero introduced its mainnet-beta and utility token on Thursday. The new network uses dedicated fiber-optic links to support high-throughput blockchain communication. The launch allows direct blockchain traffic routing between major locations to speed up transactions and reduce delays.

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According to DoubleZero, the decentralized physical infrastructure network (DePIN) now has over 70 high-speed connections linking 25 geographic areas. These direct paths avoid the public internet, which often slows blockchain activity because of other types of general traffic, such as gaming and streaming.

In a statement given to Cointelegraph in May, DoubleZero founder Austin Federa said, “The downside of the public internet is that it was never built for high-performance systems. It was always built for this sort of relationship of one big server talking to one little server.” The company aims to address this limitation by allowing blockchains to communicate faster and more directly. Visual information shared by the company shows how their network connects locations more efficiently compared to traditional routing over the public internet. More details are available in their official journal.

On Monday, the U.S. Securities and Exchange Commission (SEC) issued a no-action letter in response to DoubleZero’s token plans. This letter stated that DePIN tokens, such as those used by DoubleZero, are not considered securities under U.S. law. SEC commissioner Hester Peirce said, “The person who runs a node, provides storage, or shares bandwidth earns a reward. These tokens are neither shares of stock in a company nor promises of profits from the managerial efforts of others.” Peirce further explained that these tokens are given as payment for work or services and that node runners operate like business owners.

This regulatory decision allowed DoubleZero to move forward with the public launch of its token after a closed validator sale held in April. The new stance shows a change from previous SEC actions, which often categorized most cryptocurrency tokens as securities and resulted in lawsuits against crypto companies. The Blockchain Association reports that these actions cost firms an estimated $426 million in legal fees during Gary Gensler’s tenure as SEC chairman.

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