SEC Grants Rare No-Action Letter to Solana DePIN Token FUSE
A unique no-action letter was sent by the U.S. SEC to Fuse a decentralized physical infrastructure network (DePIN) based on the Solana...
Quick overview
- The U.S. SEC issued a rare no-action letter to Fuse, a decentralized physical infrastructure network on the Solana blockchain, signaling a shift towards a more crypto-friendly regulatory environment.
- This approval provides regulatory comfort for Fuse's native coin, FUSE, which is classified as a utility token rather than a financial asset.
- The SEC's decision is significant for the cryptocurrency industry, as it offers a roadmap for compliance amidst the lack of comprehensive digital asset legislation in the U.S.
- The ruling may encourage more utility projects on the Solana blockchain to engage with regulators, fostering a collaborative atmosphere between entrepreneurs and lawmakers.
A unique no-action letter was sent by the U.S. SEC to Fuse a decentralized physical infrastructure network (DePIN) based on the Solana blockchain. This approval represents a change toward a more transparent crypto-friendly atmosphere under the SEC’s new leadership and provides considerable regulatory comfort to Fuse’s native coin FUSE. In the cryptocurrency world no-action letters are incredibly rare thus this choice is particularly significant for the industry as a whole.
What the No-Action Letter Means
In a formal correspondence known as a “no-action letter” SEC employees affirm that they will not suggest enforcement action in the event that the project fulfills the requirements outlined in the request. On November 19 Fuse filed a request with the SEC to verify that there is no violation of securities laws in the issuance and sale of FUSE tokens.
Fuse stated that FUSE is only a utility token in its submission. It is used within the network to compensate users who provide physical infrastructure such connectivity or power. Its redemption is restricted to fair market pricing via third-party suppliers and it is not intended for investment or speculation. These features provide support to the claim that FUSE is not a financial asset but rather a useful utility.
SEC’s Response and Why It Matters
Deputy Chief Counsel Jonathan Ingram of the SEC’s Division of Corporation Finance affirmed that the agency would not suggest any enforcement. After a similar result for DoubleZero FUSE is now just the second DePIN project to be approved in this manner this year.
No-action letters provide useful assurance even though they do not establish legally enforceable precedent. In the lack of thorough digital asset legislation in the United States they also offer a useful road map for other blockchain initiatives looking to comply.
Austin (@Austin_Federa) on what it was like getting approval from the SEC.
"A no action letter is something that is pretty common in the TradFi but they're very rare in crypto and they're sort of a highly coveted letter. pic.twitter.com/V0v3LHYgse
— The Rollup (@therollupco) October 2, 2025
Many cryptocurrency innovators said that the SEC was antagonistic to blockchain innovation under prior leadership particularly under former head Gary Gensler.
Hester Peirce a longtime supporter of cryptocurrency is part of the new leadership and is currently in charge of the agency’s crypto task force. As a result there has been an increase in positive interaction, improved communication and a desire to cooperate directly on initiatives.
According to legal experts the token’s pure utility model made the FUSE case comparatively straightforward. According to Bill Hughes of Consensys the majority of attorneys would not classify FUSE as a security under the Howey Test which determines whether an agreement is an investment contract.
Why No-Action Letters Are So Important
No-action letters provide clarification for cryptocurrency firms given the United States lacks comprehensive legislation pertaining to digital assets. Many teams pursue these letters in order to prevent subsequently dealing with expensive enforcement actions, according to Rebecca Rettig and other legal experts. The SEC also granted no-action relief for some cryptocurrency custodians earlier this year, which is another indication of a more impartial regulatory strategy.
Effects on the Solana Ecosystem and DePIN
The certification increases trust in the growing DePIN industry which uses blockchain to create real-world infrastructure. Solana’s speed, cheap costs and capacity to manage micro-transactions at scale have made it a top home for DePIN projects.
This letter of no action may inspire more utility projects headquartered in Solana to proactively approach authorities. The SEC’s ruling marks a favorable turning point for U.S. crypto regulation and paves the way for closer cooperation between entrepreneurs and legislators even though it is not a permanent legal protection.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save