TLDR
- The SEC issued a no-action letter to the Solana DePIN Fuse project regarding its FUSE token.
- The Solana DePIN Fuse project receives a no-action letter from the SEC regarding token sales.
- The SEC confirms that it will not take any enforcement action against Fuse, a Solana DePIN project, with respect to its FUSE token.
- Fuse, a Solana DePIN project, has received a no-action letter from the SEC regarding its FUSE token sales.
- The SEC has cleared Fuse, a project of Solana DePIN, by issuing a no-action letter on its FUSE token.
The SEC granted its second no-action letter to A Solana Dibben The project in recent months. This letter provides regulatory assurance to Fuse, a decentralized physical infrastructure network (DePIN) project, regarding its FUSE token. The No Action Letter confirms that the SEC will not take enforcement action against Fuse, provided it continues to offer and sell its FUSE tokens as described.
Fuse is seeking SEC approval for its Solana DePIN token
Valves Submitted filed with the SEC’s Division of Corporate Finance on November 19. In its letter, Fuse requested formal confirmation that the SEC will not recommend enforcement actions with respect to its activities involving the FUSE token. The project explained that FUSE is intended for network utility and consumer purposes, not for speculation.
FUSE tokens are designed to reward participants for maintaining the Solana DePIN network. According to the message, these tokens can only be exchanged at the mid-market price through third-party platforms. “Based on the facts presented, the Division will not recommend enforcement action to the Commission,” said Jonathan Ingram, deputy chief counsel for the Division of Corporate Finance.
This is the second time that second No Action Letter awarded to Solana DePIN Project. Just a few months ago, the SEC issued a similar letter to Double Zero, another cryptocurrency project. Both cases indicate a shift in the agency’s approach under its new leadership toward providing greater regulatory clarity for cryptocurrency companies.
Rebecca Rettig, Jito Labs’ legal representative for the Solana MEV platform, explained why no-action letters are in high demand in the cryptocurrency space.
“If you plan to issue a token, NAL provides reasonable assurance that you will not face immediate execution for violations of securities laws.” She said.
The SEC takes a balanced approach to regulating cryptocurrencies
Cryptocurrency legal experts saw the SEC’s decision as predictable. Bill Hughes, attorney Consensusstated that the Fuse token is unlikely to be classified as a security.
“The takeaway is that no cryptocurrency lawyer would have thought that this token was a security.” He added.
The design of the token corresponds to the utility of the network, further distinguishing it from securities.
Hughes stressed that the case was clear and straightforward. He noted that anyone familiar with the Howey test used to determine whether an asset is a security would find the Fuse code outside of its scope.
Under the new leadership of Chairman Paul Atkins, the SEC has adopted a more balanced approach to regulating cryptocurrencies. Crypto-friendly Commissioner Hester Peirce chairs the SEC’s cryptocurrency task force and guides the agency’s recent decisions. The shift toward clarity and cooperation in cryptocurrency projects is evident in the SEC’s evolving stance.
Fuse’s no-action letter follows a similar letter issued to cryptocurrency custodians in the same month. This letter provided clear guidance on how non-bank crypto custodians should operate, providing the cryptocurrency industry with more predictable regulatory conditions.
