Quick overview
- The US Securities and Exchange Commission has issued a rare no-action letter to Fuse, a decentralized physical infrastructure network on the Solana blockchain, signaling a shift toward a more favorable regulatory environment for cryptocurrencies.
- This approval provides regulatory relief for Fuse’s native token, FUSE, which is classified as a utility token and not a financial asset.
- The SEC’s decision is important for the cryptocurrency industry, as it provides a roadmap for compliance amid the lack of comprehensive digital asset regulation in the United States.
- This ruling may encourage more utility projects on the Solana Chain to engage with regulators, strengthening the atmosphere of cooperation between entrepreneurs and regulators.
A unique no-action letter has been sent by the US Securities and Exchange Commission to integrate a decentralized physical infrastructure network (DePIN) based on the Solana blockchain. This approval represents a change towards a more transparent and cryptocurrency-friendly atmosphere under the new leadership of the SEC and provides significant regulatory relief for the FUSE native coin. In the world of cryptocurrencies, no-action letters are incredibly rare, so this choice is of particular importance to the industry as a whole.
What does a no action message mean?
In a formal communication known as a “no-action letter,” SEC staff confirmed that they would not propose enforcement action if the project met the requirements outlined in the application. on November 19 Fuse has filed an application with the Securities and Exchange Commission to verify that there is no violation of securities laws in the issuance and sale of FUSE tokens.
Fuse stated that FUSE is just a utility token in its introduction. It is used within the network to compensate users who provide physical infrastructure such as connectivity or power. Redemptions are limited to fair market prices via external suppliers and are not intended for investment or speculation. These features provide support for the claim that FUSE is not a financial asset but a useful tool.
The SEC’s response and why it matters
Deputy Chief Counsel Jonathan Ingram of the SEC’s Division of Corporate Finance confirmed that the agency would not propose any enforcement. Following a similar result, DoubleZero FUSE is now the second DePIN project to be approved in this way this year.
No-action letters provide useful assurance even though they do not set a legally enforceable precedent. In the absence of comprehensive digital asset legislation in the US, they also provide a useful roadmap for other blockchain initiatives looking to comply.
austin (@Austin_Federa) about what it was like to get SEC approval.
“The no-action letter is very common in TradFi but very rare in cryptocurrencies and is a very desirable type of letter. pic.twitter.com/V0v3LHYgse
– Rollupco (@therollupco) October 2, 2025
Many cryptocurrency innovators said that the SEC was hostile to blockchain innovation under previous leadership and especially under former Chairman Gary Gensler.
Hester Pierce The longtime cryptocurrency supporter 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 willingness to collaborate directly on initiatives.
According to legal experts, the token’s pure utility model made the case for FUSE relatively straightforward. according to Bill Hughes From Consensys The majority of attorneys will not classify FUSE as a security under the Howey test that determines whether an agreement is an investment contract.
Why are no-action messages so important?
The no-action letters provide clarity to cryptocurrency companies since the United States lacks comprehensive legislation related to digital assets. Many teams track these letters in order to prevent later dealing with expensive enforcement actions, according to Rebecca Rettig and other legal experts. The SEC also granted no-action relief to some cryptocurrency custodians earlier this year, another indication of a more neutral regulatory strategy.
Impacts on the Solana and DePIN ecosystem
The certification increases confidence in the growing DePIN industry that uses blockchain to create real-world infrastructure. Solana’s speed, cheapness, and ability to manage small transactions at scale make it the best place for DePIN projects.
This no-action letter may inspire more Solana-headquartered utility projects to proactively reach out to authorities. The SEC ruling represents a favorable turning point for cryptocurrency regulation in the United States and paves the way for closer cooperation between entrepreneurs and regulators even though it is not permanent legal protection.
Arslan bot
Lead Market Analyst – Multi Asset (Forex, Commodities, Cryptocurrencies)
Arslan Butt works as a lead analyst for commodities and indices, bringing him a wealth of experience in this field. With an MBA in Behavioral Finance and active progress towards a PhD, Arslan has a deep understanding of market dynamics. His career journey includes a significant role as a Senior Analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. With extensive experience educating others, Arslan has a commendable track record as a teacher and public speaker. His insightful analysis, particularly in the areas of cryptocurrencies and forex markets, is featured across respected financial publications such as ForexCrunch, InsideBitcoins and EconomyWatch, enhancing his reputation in the financial community.
