The US Securities and Exchange Commission has issued a no-action letter to Solana-based decentralized physical infrastructure network (DePIN) project Fuse, providing rare regulatory protection for its FUSE token.
Key Takeaways:
- The SEC granted Fuse a no-action letter, confirming it will not recommend enforcement if the FUSE token is sold as described.
- This is the second DePIN project in recent months to receive such relief.
- Industry figures say the SEC’s new leadership is driving a more constructive approach to token oversight.
Fuse submitted its request to the SEC’s Division of Corporation Finance on Nov. 19, seeking assurance that the agency would not recommend enforcement if it moved forward with the offer and sale of FUSE.
The project emphasized that its token is designed strictly for network participation, not speculative investing, and functions as a reward for users who maintain Fuse’s distributed infrastructure. FUSE may only be redeemed through third-party venues at prevailing market rates.
SEC Says It Won’t Pursue Enforcement Against Fuse Token Sales
In a letter signed Monday by deputy chief counsel Jonathan Ingram, the SEC agreed.
“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 wrote.
The decision marks the second time in recent months that the SEC has granted no-action relief to a DePIN project.
In August, the agency issued a similar letter to Double Zero, surprising many in the industry and fueling optimism that the SEC, now led by Chair Paul Atkins, is taking a more measured approach after years of tension under former chair Gary Gensler.
DoubleZero co-founder Austin Federa described the SEC’s process as “professional, diligent, and without crypto animosity,” calling the approval “highly coveted.”
No-action letters are routine in traditional finance but extremely rare in crypto, making these back-to-back approvals especially notable.
The SEC’s leadership reshuffle earlier this year placed Commissioner Hester Peirce, long considered one of the industry’s most pro-innovation voices, in charge of the agency’s crypto task force.
Since then, the agency has taken steps that many founders say resemble a return to practical rulemaking rather than aggressive enforcement.
Why No-Action Letters Matter
Legal experts say Fuse’s approval was straightforward. Consensys lawyer Bill Hughes wrote that “not a lawyer in crypto” would classify FUSE as a security, given its consumptive design and narrow 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
Solana-ecosystem attorney Rebecca Rettig said crypto teams seek no-action letters because they offer “regulatory clarity,” a reasonable assurance that launching a token will not trigger immediate SEC action. “It’s a kind of regulatory cover,” she said.
The document does not establish new legal precedent, but it underscores 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 logjammed under previous leadership.
Meanwhile, Atkins is considering establishing a “token taxonomy” at the federal regulator in an effort to clarify the classification of specific crypto assets.
Earlier this month, Atkins announced that he is weighing 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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