Decentralized Physical Infrastructure Networks (DePIN) Gain Attention from Regulators
Greg Osuri, CEO of Akash, a leading DePIN protocol, recently highlighted the growing recognition from regulators of the unique value DePIN projects bring. In an interview, Osuri emphasized his mission to differentiate DePIN from other crypto sectors in regulatory discussions. He pointed to a productive meeting with a key staffer from the U.S. House Committee overseeing commerce and trade as a positive step toward this goal.
Osuri and Akash have joined forces with InFlux Technologies, a competitor in the space, to form a DePIN and Web3 advocacy group. Their objective is to create a clear regulatory framework that addresses the specific needs of the sector.
DePIN: A Distinct Category in Web3
DePIN projects aim to provide users with ownership and control over real-world infrastructure using blockchain technology. This includes everything from GPU chips to wireless data networks. Unlike many crypto projects, DePIN offers tangible, real-world value. Alvaro Garcia, a partner at Borderless Capital, recently remarked that DePIN is unique in Web3 because its value originates from outside the crypto ecosystem. This makes DePIN projects more resilient to the market volatility that often impacts other crypto sectors.
At the recent Mainnet conference, Osuri echoed this sentiment, highlighting the growing interest in DePIN among regulators and mainstream audiences.
Akash’s Role in Disrupting Oligopolies
Osuri shared that Akash has gained a reputation for disrupting traditional oligopolies, making it appealing to mainstream users. “DePIN is resonating with mainstream crowds far more than other crypto sectors,” he noted. This mainstream appeal has also caught the eye of venture capitalists. Borderless Capital recently raised $100 million for its third DePIN fund, which has invested in projects like Helium, a decentralized wireless network, and GEODNET, a decentralized network for satellite navigation.
Regulating DePIN Separately from DeFi and NFTs
Osuri argues that DePIN’s unique characteristics warrant a different regulatory approach compared to other crypto sectors like DeFi. The newly formed DePIN and Web3 advocacy group, in collaboration with InFlux Technologies, seeks to separate DePIN from the broader crypto regulatory landscape. Osuri explained that regulators often group all crypto sectors together, which can lead to inappropriate oversight. “It’s crucial that lawmakers and regulators understand the distinct value DePIN offers,” he said.
Osuri also emphasized the importance of unity within the DePIN space, noting that the collaboration between Akash and InFlux shows the sector’s commitment to achieving regulatory clarity. “By working together, we can better communicate the value of DePIN to regulators and policymakers,” Osuri said.
Focusing on Value Over Crypto Labels
While DePIN projects often utilize blockchain technology, Osuri stressed that it’s more important to focus on the benefits these projects provide rather than their crypto origins. “If you visit Akash’s website, there’s almost no mention of crypto,” Osuri explained. “We’re focusing on communicating the user benefits rather than the technical architecture.” This approach helps Akash appeal to a broader audience, including AI professionals who prioritize functionality over crypto terminology.
By positioning DePIN as a technology that offers real-world value and benefits, Osuri and his peers aim to build a future where DePIN is recognized as a crucial infrastructure category—both by users and regulators.
