- The SEC clears the FUSE token as a non-security token, providing regulatory clarity.
- The FUSE token rewards grid participation and green energy actions, not profits.
- The market is showing renewed momentum, boosting the FUSE token price outlook.
The US Securities and Exchange Commission (SEC) has issued a no-action letter to Fuse, a Solana-based Decentralized Physical Infrastructure Network (DePIN) project, providing the token with rare regulatory clarity.
This development has sparked optimism about the potential of the FUSE token, highlighted its utility-based design and positioned it as a prominent example of how blockchain projects can deal with US securities regulations.
The SEC is clearing the valves
Fuse Crypto filed a formal application with the SEC’s Division of Corporate Finance on November 19, seeking confirmation that it could continue offering its FUSE token without enforcement action.
In its response, the SEC emphasized that it would not recommend enforcement, based on the specific facts and circumstances described by Fuse.
This no-action letter, although conditional, represents an important milestone for the project, as such regulatory guidance is rare in the cryptocurrency space.
Notably, the SEC’s decision signals a shift under Paul Atkins’ leadership toward a more practical and balanced approach to token oversight, in contrast to the more stringent policies of previous administrations.
Unlike speculative tokens, the FUSE token is designed for sharing and benefiting the network.
It is as a reward for users who maintain Fuse’s distributed infrastructure and not as an investment vehicle.
Token holders earn tokens through active participation, such as contributing to Solana-based grid operations, installing solar panels, or using electric vehicle chargers.
By linking token rewards to tangible energy-focused activities, FUSE has structured FUSE as a consumer asset consistent with regulatory expectations, reducing the risk of it being classified as a security under US law.
A utility-driven symbolic model
The SEC highlighted that FUSE token holders do not expect profits from FUSE’s management efforts, and that the token does not confer ownership, profits, or voting rights.
This utility-based framework allows participants to redeem tokens for benefits such as energy bill reductions, priority access to home electrification upgrades, or carbon offset programs.
By focusing on real-world use cases and engagement with sustainable energy, Fuse has created a model where blockchain technology directly incentivizes environmentally conscious behavior.
The token’s scalability ensures it can grow alongside the project’s broader green energy initiatives, enhancing its role as a functional and consumer asset rather than a speculative instrument.
The approval has resonated across the DePIN sector, an industry valued at more than $24 billion, because it provides a blueprint for other infrastructure-based blockchain projects.
Fuse’s approach demonstrates how decentralized networks can effectively combine token rewards with practical benefit, providing financial and environmental value to participants.
Market impact and FUSE token price forecast
Following the announcement, the FUSE token showed signs of regaining momentum in the trading markets.
Current numbers indicate that the token is trading at around $0.0077, with a market cap of around $2.4 million and a total locked value of over $68 million.
Over the past year, the coin has seen a significant decline from its all-time high of $2.13 in January 2022, but the SEC’s no-action letter has injected renewed confidence among investors.
Looking to the future, FUSE’s enhanced regulatory status, combined with its utility-oriented model, could positively impact the FUSE token price outlook in the medium term.
