Solana DePIN Project Fuse Receives SEC No-Action Letter for Token Sales

TLDR

• The SEC has issued a no-action letter to the Solana DePIN project Fuse regarding its FUSE token.
• Solana DePIN project Fuse receives a no-action letter from the SEC for its token sales.
• The SEC confirms that it will not take enforcement action against Fuse, a Solana DePIN project, regarding its FUSE token.
• Fuse, a Solana DePIN project, secures a no-action letter from the SEC for its FUSE token sales.
• The SEC has cleared Fuse, a Solana DePIN project, by issuing a no-action letter for its FUSE token.

The SEC has granted its second no-action letter to a Solana DePIN 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 Seeks SEC Approval for Solana DePIN Token

Fuse submitted a request to the SEC’s Division of Corporation Finance on November 19. In its letter, Fuse requested official confirmation that the SEC would not recommend enforcement action regarding its activities involving the FUSE token. The project clarified that FUSE is intended for network utility and consumptive purposes, not for speculation.

The FUSE tokens are designed to reward participants for maintaining the Solana DePIN network. According to the letter, these tokens can only be redeemed for an average market price through third-party platforms. “Based on the facts presented, the Division will not recommend enforcement action to the Commission,” Jonathan Ingram, Deputy Chief Counsel of the Division of Corporation Finance, stated.

This marks the second time the SEC has granted a no-action letter to a Solana DePIN project. Just a few months ago, the SEC issued a similar letter to Double Zero, another crypto project. Both instances suggest a shift in the agency’s approach under its new leadership toward providing greater regulatory clarity for crypto firms.

Rebecca Rettig, legal representative for Solana MEV platform Jito Labs, explained why no-action letters are highly sought after in the crypto space.

SEC Adopts Balanced Approach to Crypto Regulation

Legal experts in the crypto space viewed the SEC’s decision as predictable. Bill Hughes, a lawyer with Consensys, stated that Fuse’s token was not likely to be classified as a security.

The token’s design aligns with network utility, further distinguishing it from securities.

Hughes emphasized that the case was straightforward. He noted that anyone familiar with the Howey Test used to determine whether an asset is a security would have found Fuse’s token outside its scope.

Under the new leadership of Chairman Paul Atkins, the SEC has adopted a more balanced approach to crypto regulation. Hester Peirce, a crypto-friendly commissioner, heads the SEC’s crypto task force, further guiding the agency’s recent decisions. The shift toward clarity and cooperation with crypto projects is evident in the SEC’s evolving stance.

The no-action letter for Fuse follows a similar letter issued for crypto custodians in the same month. This letter provided clear guidelines for how non-bank crypto custodians can operate, offering the crypto industry more predictable regulatory conditions.

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