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The United States Securities and Exchange Commission (SEC) has issued a rare no-action letter to Fuse, a Solana-based decentralized physical infrastructure network (DePIN) project. This marks only the second time in recent months that the regulator has provided this level of clarity to a crypto network, highlighting a noticeable shift in its approach to digital assets.
The letter gives Fuse what many describe as “regulatory cover,” confirming that the agency’s Division of Corporation Finance will not recommend enforcement action over the ongoing trading of the FUSE token on third-party marketplaces. For the DePIN sector, which has been rapidly expanding across several blockchain ecosystems, the decision is seen as an important milestone.
Fuse Seeks Clarity on Token Trading
Fuse submitted its request to the SEC on Nov. 19, asking for confirmation that FUSE tokens could continue to circulate on external marketplaces without triggering securities law enforcement. In its submission, the team emphasized that the token is strictly designed for network utility, rewarding active participants who help maintain the decentralized infrastructure.
According to the project, FUSE is not structured for speculation and has consumptive use within the network. It can only be exchanged at an average market price through third parties, further supporting its role as a functional token rather than an investment vehicle.
In its response, Jonathan Ingram, deputy chief counsel for the Division of Corporation Finance, confirmed that the SEC would not recommend enforcement if Fuse continued to offer and sell tokens under the specific conditions outlined.
A Second Win for the DePIN Sector
This letter comes shortly after the SEC granted a similar decision to Double Zero, another DePIN-related project. At the time, industry members called the approval “highly coveted,” noting that such letters are very unusual in the crypto sector, even though they are relatively common in traditional finance.
DoubleZero co-founder Austin Federa said the experience showed a greater willingness from the SEC to engage constructively. He described the process as professional and detailed, without the resistance that many crypto firms say they encountered in previous years.
New SEC Leadership Signals a Different Era
The shift in tone comes after significant changes in SEC leadership. Paul Atkins, sworn in as the agency’s 34th chairman in April, is widely viewed as more open to blockchain technology and digital asset innovation. Crypto-friendly commissioner Hester Peirce now leads the SEC’s crypto task force, reinforcing expectations that the agency is moving toward a more balanced, consistent, and collaborative regulatory style.
For many in the industry, the no-action letter for Fuse represents evidence that the SEC is becoming more predictable and clearer with its decisions. This could help reduce regulatory uncertainty that has long held back token issuers and infrastructure developers.
Why No-Action Letters Matter for Crypto
Legal experts say that no-action letters are important because they provide reasonable assurance that a project will not face immediate enforcement for securities law violations—an area where many crypto teams have struggled to navigate. Rebecca Rettig, legal representative for Solana-based Jito Labs, said these letters offer much-needed regulatory clarity.
She noted that for teams planning to introduce a token, such letters help determine the boundaries of acceptable behavior, giving them a structured framework to operate without fear of sudden enforcement.
Legal Perspective: Fuse Was an “Easy Case”
Not everyone sees the Fuse letter as groundbreaking. Bill Hughes, a lawyer at Consensys, noted that based on established legal standards—particularly the Howey test—most attorneys would have already expected FUSE not to qualify as a security.
He suggested the clarity is helpful but does not significantly shift legal interpretations or set new precedents. Instead, it reinforces that tokens with strong utility use cases and limited speculative characteristics are less likely to fall under securities classification.
Growing Optimism Among U.S. Crypto Founders
After years of frustration under former SEC chair Gary Gensler, many U.S. crypto founders viewed the agency as hostile toward innovation. However, recent actions—including no-action letters for Double Zero, Fuse, and certain non-bank custodians—indicate a more cooperative stance.
Crypto custodians that do not meet the definition of a traditional bank also received a separate no-action letter earlier this year. While they must adhere to strict conditions, they now have clearer operating guidelines—an improvement the industry has been seeking for years.
A Sign of Stability for DePIN and Beyond
The SEC’s latest decision has been welcomed by DePIN developers and broader crypto participants. While it may not introduce new legal standards, it signals growing regulatory stability at a time when builders need predictable rules.
With multiple DePIN networks expanding across Solana, Ethereum, and other chains, clarity around token status could support continued growth and reduce friction for teams working at the intersection of physical infrastructure and blockchain technology.
