Weekly Cryptocurrency Regulation Update: SEC Approves Solana’s Fuse Token and Trump Considers Crypto-Supportive Federal Reserve Chair

This past week has been significant in Washington and beyond, with U.S. regulators conveying mixed yet impactful signals regarding crypto, AI, and financial policy. From the SEC approving a Solana-based token to the possibility of a crypto-friendly Federal Reserve chair, the regulatory landscape is rapidly evolving—especially as policymakers contend with emerging technologies that are advancing faster than current frameworks can accommodate.

SEC Issues Rare No-Action Letter to Fuse

The major news came from the U.S. Securities and Exchange Commission, which provided a no-action letter to the Solana-based DePIN initiative Fuse—an uncommon move for a blockchain project seeking clarity on token sales.

The SEC granted @fuseenergy a no-action letter, confirming it will not recommend enforcement if the FUSE token is sold as described.#SEC #Cryptohttps://t.co/crv9LwdICN

— Cryptonews.com (@cryptonews) November 25, 2025

On November 19, Fuse requested confirmation from the SEC’s Division of Corporation Finance that it would not recommend enforcement action regarding the offer and sale of its FUSE token. The project clarified that FUSE is not marketed as a speculative asset; rather, it serves solely as a network participation token, awarded to users who support the protocol’s decentralized infrastructure. The SEC concurred.

In a letter signed by deputy chief counsel Jonathan Ingram, the agency indicated it would refrain from enforcement “based on the facts presented” if Fuse complies with the outlined parameters.

Moreover, the token can only be redeemed through third-party platforms at market rates, reflecting the SEC’s emphasis on eliminating any investment-like features.

This represents the second no-action letter related to DePIN in recent months. Although it does not set a precedent, the decision serves as a valuable datapoint: when tokens are narrowly defined for utility and distribution is managed, the SEC appears more receptive to providing relief. For projects developing real-world infrastructure on-chain, this is one of the clearest regulatory indicators we have seen in recent months.

Trump’s Leading Fed Candidate Has Strong Crypto Connections

The crypto markets may soon gain a supportive voice at the highest levels of U.S. monetary policy. Kevin Hassett—director of the White House National Economic Council and a long-time ally of Trump—has emerged as the frontrunner to succeed Jerome Powell as Federal Reserve chair.

Kevin Hassett, director of the National Economic Council, has emerged as Trump’s top Fed chair contender, putting a crypto-linked ally within reach of leading the central bank.#KevinHassett #FedChair https://t.co/Oa59lRry11

— Cryptonews.com (@cryptonews) November 26, 2025

Notably, Hassett has a background in digital assets. He has actively engaged with the crypto industry, consulted with policy groups associated with the sector, and expressed a willingness to embrace digital-asset innovation.

Trump’s advisors characterize him as someone the president relies on heavily regarding interest-rate policy—especially concerning the potential for more aggressive cuts than Powell has suggested. Hassett has also reportedly indicated he would accept the position if offered.

If appointed, he would be the most crypto-friendly Fed chair in U.S. history. Although the Fed does not regulate crypto, its policies on dollar liquidity, stablecoins, and payment systems have significant downstream implications. A chair that favors innovation could encourage greater openness among other agencies—or at the very least, lessen friction.

Bipartisan Legislation Addresses Increasing AI-Driven Fraud

With AI-generated scams on the rise, Congress is taking action. This week, lawmakers introduced the AI Fraud Deterrence Act, a bipartisan initiative from Rep. Ted Lieu (D-CA) and Rep. Neal Dunn (R-FL). The bill aims to impose stricter penalties on crimes committed using artificial intelligence—particularly impersonation schemes, deepfakes, automated theft, and coordinated fraud operations.

U.S. lawmakers propose the AI Fraud Deterrence Act against rising AI‑powered fraud and deepfake scams.#AIFraud #CyberSecurityhttps://t.co/ciWFO9LUcf

— Cryptonews.com (@cryptonews) November 26, 2025

The legislation is also explicitly linked to financial markets and crypto, where AI-driven fraud is escalating at an alarming pace. High-profile incidents involving deepfake video scams, impersonation bots, and automated phishing rings have increased pressure on lawmakers to take action.

The overarching message of the bill is clear: manipulation, impersonation, and automated fraud utilizing AI tools will face more severe federal repercussions. Anticipate this framework to develop rapidly, given the sharp increase in AI-driven schemes across exchanges and Web3 platforms.

CFTC Advocates for New Framework for Prediction Markets

Lastly, at the CFTC, Commissioner Caroline Pham is taking steps to bring prediction markets into clearer regulatory focus.

Pham announced that the agency is seeking nominations for its new CEO Innovation Council, which is intended to provide guidance on emerging markets and frontier financial technologies. One of the council’s initial priorities will be the swiftly evolving prediction markets sector—a domain that has grown too significant and influential for federal regulators to overlook.

CFTC Commissioner Caroline Pham is looking for nominations to join the agency’s new CEO Innovation Council.#CFTC #CarolinePhamhttps://t.co/1CDTrZtFyU

— Cryptonews.com (@cryptonews) November 26, 2025

Through a press release dated November 25, Pham invited public nominations and urged industry participants to suggest topics the council should prioritize. As prediction markets increasingly intersect with politics, finance, sports, and crypto, the CFTC is evidently preparing for a more organized approach.

This development comes as platforms like Polymarket continue to grow and gain mainstream attention, compelling regulators to reassess how forecasting markets fit within existing derivatives legislation.

The Broader Context

From the SEC’s cautious acceptance of utility-focused tokens to Congress tightening regulations on AI-related crime, and the CFTC’s efforts to modernize its oversight, the regulatory environment is evolving in real time.

However, the most significant development may be Trump’s apparent intention to appoint a Fed chair aligned with crypto innovation. Such an appointment would have far-reaching implications across all areas of financial policy—from stablecoins to global dollar systems to innovations in payments.

The post Weekly Crypto Regulation Roundup: SEC Clears Solana’s Fuse Token and Trump Eyes Crypto-Friendly Fed Chair appeared first on Cryptonews.