As DePIN (Decentralized Physical Infrastructure Networks) continues to emerge as one of the most promising sectors in crypto, builders and users alike are asking a pressing question:

Where does DePIN fit in the U.S. regulatory landscape?

While current legislation in Congress mostly focuses on digital assets broadly (stablecoins, tokens, market infrastructure), the implications for DePIN are significant. These policies will shape how DePIN projects raise funds, reward contributors, and operate real-world services.

Here’s a look at the major legislation on the table, and how DePIN projects like IoTeX are helping ensure the sector has a seat at the table.

🧾 Key Legislation Affecting DePIN

1. The STABLE Act & GENIUS Act: Stablecoins as DePIN Fuel

At first glance, stablecoin regulation might seem orthogonal to DePIN. But for many DePIN projects – from decentralized EV charging to token-incentivized weather or wireless networks – stablecoins, are the financial backbone. They're often used to:

• Pay node operators
• Fund DAO treasuries
• Enable microtransactions for data, power, or bandwidth
• Avoid crypto volatility for real-world users

The STABLE Act, recently passed by the House Financial Services Committee, and the GENIUS Act in the Senate, would require issuers to meet strict reserve and licensing standards. While these bills increase consumer protection, they also risk limiting the diversity of stablecoin issuers DePIN projects can integrate with — especially those relying on algorithmic or non-bank-issued coins.

If passed, expect a DePIN-wide shift toward more centralized or regulated stablecoin options like USDC and PayPal USD.

2. FIT21 Act & Market Structure: What is a Token, Anyway?

The Financial Innovation and Technology for the 21st Century (FIT21) Act, passed by the House in 2024, aims to classify tokens as either digital commodities (regulated by the CFTC) or digital asset securities (regulated by the SEC), based on their degree of decentralization and utility.

This is hugely relevant to DePIN.

Tokens like $HNT (Helium), $DIMO, or $IOTX (IoTeX) are not just speculative assets; they are infrastructure enablers. They reward users for powering physical infrastructure, validate sensor data, and grant governance rights. FIT21 offers a path to clarity, potentially exempting utility-heavy tokens from the stricter scrutiny of securities law.

But uncertainty remains. If a DePIN token is deemed a security, it could limit exchange listings, restrict U.S. user access, and trigger extensive compliance burdens, especially for early-stage projects with small teams.

3. The Digital Asset Market Structure Act: The Grey Zone Shrinks

The Digital Asset Market Structure and Investor Protection Act, introduced in 2023, reinforces the FIT21 framework and adds compliance requirements under the Bank Secrecy Act (BSA), targeting anti-money laundering and reporting.

For DePIN projects handling real-world payments, this could mean:

• Registering as money transmitters
• Complying with Know Your Customer (KYC) rules
• Maintaining detailed records of on-chain-to-off-chain flows

This is especially relevant for DePINs operating in industries like mobility, energy, or public infrastructure, where interactions with real-world users are constant. While the bill hasn’t advanced as far as FIT21, it signals an increasingly narrow zone of regulatory ambiguity.

The BITCOIN Act: A Strategic Shift in Narrative

Though not directly related to DePIN, the BITCOIN Act (proposing a U.S. strategic reserve of BTC) reflects a maturing view of digital assets as national infrastructure. If the U.S. begins treating crypto as part of its strategic economic portfolio, the same narrative could apply to DePIN — which offers physical infrastructure resiliency through decentralized networks.

In other words, just as BTC might be treated as digital gold, DePIN might be seen as a new form of physical commons and demand supportive regulation.

Repealing the DeFi Broker Rule: A Win for Open Networks

In late 2024, the IRS introduced a rule expanding the definition of “brokers” to include DeFi protocols — which would have required decentralized platforms to collect user transaction data and report it to the IRS.

Opponents argued the rule was technically unworkable for protocols without centralized control or user accounts.Many feared it would chill innovation and cripple permissionless infrastructure development in the U.S.

In March 2025, Congress voted to repeal the DeFi Broker Rule using the Congressional Review Act.

For DePIN, this is a huge win. Many DePIN projects use smart contracts and token incentives in ways that resemble DeFi, but they do so to coordinate real-world activity. Repealing the broker rule ensures these projects won’t be strangled by unrealistic data collection rules that don’t fit decentralized infrastructure models.

🇺🇸 Real Advocacy: IoTeX and the Blockchain Association Lead the Way

On April 6, 2025, the IoTeX team, alongside the Blockchain Association, brought the DePIN message directly to Washington. As part of a 35-person delegation, they met with 10 Congressional offices across the political spectrum, including representatives from California, Colorado, Ohio, and New York.

Our goal? Position DePIN as real infrastructure, not financial speculation.

Each meeting was tailored with talking points, voting history analysis, and hands-on demos. Lawmakers physically interacted with DePIN devices like Nubila’s Marco weather sensor, seeing firsthand how decentralized networks can support climate resilience, connectivity, and clean energy.

The delegation emphasized:

• That DePIN tokens are tied to real-world activity and should be regulated as commodities under the CFTC
• That projects like IoTeX, GLOW (decentralized solar), and Nubila (decentralized weather) offer public-good infrastructure
• That the FIT21 Act must include clarity for real-world use cases, not just financial assets

In a meeting with Rep. Gabe Evans (R-CO), known for his focus on energy, our team demonstrated how DePIN could empower peer-to-peer solar sharing. It clicked. That’s the kind of connection that turns passive listeners into policy champions.

🌍 What’s Next for DePIN in Washington?

The current bills don’t yet name DePIN outright, but thanks to advocacy efforts like those by IoTeX, Filecoin Foundation, and the Blockchain Association, that’s starting to change.

Here’s what needs to happen next:

• More education for policymakers on what DePIN actually does
• Clear regulatory carve-outs or definitions for infrastructure-based tokens
• Support for compliant, mission-aligned stablecoins to fuel DePIN ecosystems
• Public-private partnerships to pilot DePIN solutions in federal programs

💬 Final Thoughts: DePIN Deserves a Seat at the Table

The U.S. has a choice: lead the next wave of infrastructure innovation or let it go offshore.

DePIN is not just about blockchain. It’s about resilient, citizen-powered infrastructure, from solar energy to air quality to mobile networks. The FIT21 Act and other bills can either unlock this potential or choke it before it takes root.

With continued advocacy and education, we can help lawmakers see DePIN not as a regulatory headache, but as a national asset.

Because the future of infrastructure is distributed.

And the future is being built today.