The U.S. Securities and Exchange Commission (SEC) has issued a rare no-action letter to the decentralized physical infrastructure network (DePIN) project Fuse, which operates on Solana.
The SEC’s decision confirms that it will not pursue enforcement actions related to the project’s FUSE token so long as it is used strictly for network utility and distributed as an incentive for infrastructure maintenance, rather than sold to the public. This regulatory stance allows Fuse to proceed without fear of immediate legal challenge and offers a precedent for similar token-based ecosystem rewards.
Fuse’s submission detailed how FUSE tokens are essential to network operations, consumed strictly for technical functions rather than speculation. According to the SEC, as long as Fuse continues to follow this model, network contributors can expect regulatory “cover,” marking a significant shift from earlier periods of regulatory uncertainty.
Also Read: Ethena Plans $250M Allocation to Securitize’s Tokenized CLO Fund on Solana
New SEC leadership signals greater openness to crypto
The no-action letter to Fuse comes amid broader changes at the SEC under new Chairman Paul Atkins, who took office in April. The leadership change has clearly shifted the SEC’s approach, leading to more open dialogue with crypto projects.
In recent months, the agency has granted similar relief to DoubleZero, another DePIN project, as well as to crypto custodians that aren’t traditional banks, signalling a broader push toward clearer, more consistent guidance. Legal experts point out that the Fuse case was relatively straightforward from a regulatory standpoint, since the FUSE token is built for functional use within the network, similar to miner rewards in Proof-of-Work systems, rather than for passive investment.
Crypto lawyers and project teams have welcomed the SEC’s changing stance, saying that no-action letters offer much-needed clarity and help cut down regulatory risk for blockchain startups. Industry observers emphasize that while these decisions do not establish sweeping precedents, they demonstrate a pragmatic shift and a baseline for what network-driven, utility-based tokens must meet to remain outside federal securities laws.
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