World Anti-Doping Agency president Dick Pound has hailed the two-year bans handed out to US sprinters Tim Montgomery and Chryste Gaines.
The Court of Arbitration for Sport (CAS) upheld bans on the duo based on evidence gathered in the Balco case.
Pound believes the bans will serve as a warning that officials do not need positive tests to punish athletes.
"It is a good warning. It means if you are going to do this drug stuff you are at risk," he said.
"This will be helpful as a deterrent.
"Finally a stake has been driven through the heart of the preposterous argument that you have to have a doping infraction by producing an analytical positive doping test.
"It is sad when any athlete makes the tragic decision to cheat"
"Everybody knows it is a nonsensical argument, but until CAS says so it is not a precedent."
Neither Montgomery nor Gaines had tested positive but the charges were issued by the US Anti-Doping Agency (USADA) following a criminal investigation into the Balco laboratory case.
In July, Balco boss Victor Conte pleaded guilty to distributing steroids while answering the charge of giving performance-enhancing substances to more than 30 sports stars.
The USADA had wanted four-year bans for Montgomery and Gaines but despite CAS reducing the penalty, Pound believes the ruling is a milestone.
"If there are other cases out there riding on this bandwagon, then the wheels have just come off," he added.
Meanwhile United States Track and Field has stripped Montgomery of his American 100m record.
The mark of 9.78 seconds, a then world record, was set at the 2002 IAAF Grand Prix final in Paris.
Maurice Greene will replace Montgomery as American title holder while Bernard Williams now becomes the 2001 USA outdoor champion.
"It is sad when any athlete makes the tragic decision to cheat, because it robs other athletes of their deserved recognition and hurts our sport," said USATF chief executive officer Craig Masback.
"We thank the CAS panel for its careful review of these cases."