SEC Issues No-Action Letter to DoubleZero: 2Z Token Not Treated as Security

In a move that could reshape how digital assets are evaluated in the U.S., the Securities and Exchange Commission (SEC) has issued a no-action letter to DoubleZero, confirming that its native token 2Z will not be treated as a security.

The decision provides one of the clearest signals yet that regulators are prepared to recognize certain crypto assets as utility tokens rather than investment contracts. This distinction has long been at the center of industry debate.

Why It Matters

For years, the lack of regulatory clarity has been one of the largest barriers to adoption in the United States. Most projects have had to operate under the assumption that tokens could be labeled as securities, triggering costly compliance obligations and enforcement risks.

The SEC’s no-action letter effectively assures DoubleZero that it can continue operating without registering 2Z as a security, as long as it adheres to the conditions outlined in the letter. This could set a precedent for other crypto projects seeking similar treatment.

Industry Reactions

The news was met with cautious optimism across the crypto community. Industry advocates see the decision as a potential roadmap for other token issuers to demonstrate sufficient decentralization and utility to avoid being classified as securities.

“This is exactly the kind of regulatory clarity we’ve been asking for,” one industry analyst noted. “It does not solve everything, but it shows that the SEC is willing to engage on a case-by-case basis and recognize that not every token fits the securities framework.”

What’s Next

While the ruling is specific to DoubleZero and its 2Z token, it may encourage more projects to approach the SEC for guidance. If more no-action letters are granted, it could gradually normalize a framework for determining which tokens qualify as utilities rather than securities.

At the same time, lawyers caution that the decision does not change the broader regulatory landscape. Enforcement actions against other projects remain ongoing, and each case will still be judged on its individual merits.

Still, for an industry starved of certainty, the DoubleZero decision is a rare win and a signal that the path toward clearer U.S. crypto rules may finally be taking shape.