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It would be acceptable as long as you only put 60psi in it. The pneumatics rules aren't very clear this year about what can be 120 and what has to be <60, but my guess is the only thing allowed upstream of the 60psi regulator is the compressor, pressure switch, gauges, tanks, and fittings.
The pneumatics manual states: "This regulator has a maximum output pressure of 60psi. This regulator must be
placed in-line right after the tanks to limit the pressure to all working circuits to 60psi."
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