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The US Securities and Exchange Commission has provided a no-action letter to the Solana-based decentralized physical infrastructure network (DePIN) project Fuse, granting uncommon regulatory protection for its FUSE token.
Key Takeaways:
- The SEC issued a no-action letter to Fuse, indicating it will not recommend enforcement if the FUSE token is sold as outlined.
- This marks the second DePIN project in recent months to receive such relief.
- Industry experts suggest that the SEC’s new leadership is fostering a more constructive approach to token regulation.
Fuse submitted its request to the SEC’s Division of Corporation Finance on Nov. 19, seeking confirmation that the agency would not recommend enforcement if it proceeded with the offer and sale of FUSE.
The project highlighted that its token is intended solely for network participation, rather than speculative investment, and serves as a reward for users who support Fuse’s distributed infrastructure. FUSE can only be redeemed through third-party platforms at current market rates.
SEC States It Will Not Pursue Enforcement Against Fuse Token Sales
In a letter dated Monday and signed by deputy chief counsel Jonathan Ingram, the SEC concurred.
“Based on the facts presented, the Division will not recommend enforcement action… if Fuse offers and sells the Tokens in the manner and under the circumstances described,” Ingram stated.
This decision represents the second instance in recent months where the SEC has granted no-action relief to a DePIN project.
In August, the agency issued a comparable letter to Double Zero, surprising many within the industry and generating optimism that the SEC, now under Chair Paul Atkins, is adopting a more balanced approach following years of tension under former chair Gary Gensler.
DoubleZero co-founder Austin Federa characterized the SEC’s process as “professional, diligent, and devoid of crypto animosity,” referring to the approval as “highly coveted.”
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No-action letters are common in traditional finance but exceedingly rare in the crypto sector, making these consecutive approvals particularly significant.
The SEC’s leadership transition earlier this year placed Commissioner Hester Peirce, widely regarded as one of the industry’s most pro-innovation advocates, at the helm of the agency’s crypto task force.
Since then, the agency has taken measures that many founders believe reflect a return to practical rulemaking instead of aggressive enforcement.
Importance of No-Action Letters
Legal experts assert that Fuse’s approval was straightforward. Consensys attorney Bill Hughes noted that “not a lawyer in crypto” would categorize FUSE as a security, considering its consumptive design and limited utility.
Latest from the @SECGov: Fuse’s token is not a security that requires registration to offer to the public because:
1) Fuse won’t sell tokens to the public;
2) tokens are earned as compensation for participation in the grid consumption efficiency goals of the network (including… pic.twitter.com/5XgjUGy69Z— Bill Hughes
(@BillHughesDC) November 24, 2025
Rebecca Rettig, an attorney within the Solana ecosystem, stated that crypto teams pursue no-action letters because they provide “regulatory clarity,” offering reasonable assurance that launching a token will not provoke immediate SEC action. “It’s a form of regulatory cover,” she explained.
The document does not set new legal precedent, but it highlights a broader shift.
In recent months, the SEC has also granted no-action relief to certain crypto custodians lacking banking charters, another area that had been stalled under previous leadership.
Meanwhile, Atkins is contemplating the establishment of a “token taxonomy” at the federal regulator to clarify the classification of specific crypto assets.
Earlier this month, Atkins revealed that he is considering the creation of a token taxonomy “anchored in the longstanding Howey investment contract securities analysis” as the next phase of the SEC’s “Project Crypto” initiative.
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