DoubleZero receives 2Z token actionless letter from Sec

Important highlights

• Us Sec issued a “non-action letter” to DoubleZero for the token “2Z”
• This letter means that the SEC will not go for enforcement action and the project does not need to be registered as a class of “Equity Securities.”
• This decision shows a positive US regulatory environment that can promote more infrastructure and utility bases

The Securities and Exchange Commission (SEC), the leading US financial regulator, has given major projects a green light by declaring that digital tokens are not security.

(Source: sec.gov)

The project, called Doublezero, received a “No Action Letter” from the Securities and Exchange Commission (SEC). This letter is a major achievement for the project.

In X’s thread, DoubleZero explained: “An action no action letter means that @Secgov’s Corporation Finance division has considered the distribution of the 2Z token program and concluded:

I’m proud to share that @Secgov has issued @Doublezero a non-action letter for 2Z. 🦅🇺🇸

The first one gives us confidence that 2Z does not have to register as a class of “equity securities” and that 2Z’s program flow on the DoubleZero network is… pic.twitter.com/gsgin6tpqj.

– doublezero ibrl/acc (@doublezero) September 29, 2025

This green signal provides much needed clarity and can open the door to a new wave of utility-based cryptographic projects.

This decision is a big deal. Because for many years, crypto companies have been operating in a grey area with uncertainty and are not sure if their tokens will be considered illegal securities by the SEC. This ruling provides a clear example of what a legal, utility-centric token might look like.

What is doublezero?

DoubleZero is a project designed to increase blockchain communication efficiency by establishing a global network using underutilized submarine fiber cables.

The token, known as 2Z, is the fuel for this network. It acts as a utility mechanism within this ecosystem. This is used by network participants known as Validators to access bandwidth and receive staking rewards for services.

In a letter to the SEC, DoubleZero claimed that people are using 2Z for its functionality.

The SEC has a flexible approach to addressing the crypto sector

This decision is another major victory across the cryptocurrency market after Ripple’s legal battle with the SEC. From 2020, it is based directly on the famous legal battle between the SEC and the company called Ripple Labs.

At the time, the SEC sued Ripple, claiming that the XRP token was unregistered security. After a long court battle, federal judges made an important distinction. She decided that when Ripple sold XRP directly to large investors it was like security. But when ordinary people traded XRP in public interactions, it wasn’t security.

This was a groundbreaking moment in cryptocurrency history. It indirectly established that the token itself is not inherently secure. It also defines these token categories based on how they are sold and used. The DoubleZero ruling takes this idea a step further and provides prepaid approval for the project before launching the network.

The SEC letter to DoubleZero is a signal. It shows that US regulators are beginning to distinguish between purely speculation tokens and tokens that do real functional work.

This clarity is exactly what big investors and tech builders have been looking for. Reduce the legal risk of starting a new project in the US. This ultimately encourages innovation to remain in the country rather than moving abroad.

“Today’s SEC no-action letter is a monumental milestone; @doublezerobut throughout the crypto industry. It’s time to celebrate the 2Z model. That compliant innovation can thrive in the US and means contributors can participate with confidence free from regulatory uncertainty,” he said in a post in X.

The decision comes amid a major push in Washington for clear code rules. The proposed law, called the Clarity Act, is currently under discussion in the Senate. This new rule is expected to write these types of distinctions into permanent law.

For now, DoubleZero’s ruling is a strong precedent. It tells the crypto world that building projects with authentic utilities, not just as investment schemes, is clear about the path to regulatory approval in the US. This is a sign that the market is growing, moving from pure speculation to building useful technologies.

This comes amid ongoing legislative efforts to establish a clear regulatory framework for the cryptocurrency market under US President Donald Trump’s pro-cryptic administration. The SEC and CFTC will work together to clarify the digital asset sector and Innovation. Today, SEC Chairman Paul Atkins said Crypto is currently his “number one” priority.