The Securities and Exchange Commission issued a rare no-action letter for the Solana-based DePIN project Fuse, marking a notable shift in the agency’s approach toward crypto regulation. The letter offers Fuse a layer of regulatory protection as the project continues distributing its FUSE token to network participants. Utility Design Helps Fuse Gain Regulator Approval Fuse submitted its request on Nov. 19 after outlining that its token supports network activity. The system rewards users who maintain the network, and the token’s design restricts speculative use. Additionally, Fuse explained that tokens can only be redeemed at an average market price through third parties. The SEC’s Division of Corporation Finance acknowledged these details and confirmed that it would not recommend enforcement. This action follows a similar no-action letter granted to DoubleZero earlier this year. Hence, observers view both cases as markers of a more stable regulatory environment for DePIN builders. Consensys lawyer Bill Hughes said the outcome appeared straightforward. He argued that “there is not a lawyer in crypto that would have thought this token was a security.” He also added that “maybe not even any lawyer who is merely familiar with Howey” would reach a different conclusion. His comments underscored why the industry expected the agency’s decision. Shift in SEC Attitude Encourages Crypto Developers The SEC’s tone has changed since Paul Atkins became chair in April. Industry teams say the new leadership has improved dialogue and offered more consistent expectations. Besides that, crypto-friendly commissioner Hester Peirce now oversees the agency’s crypto task force, further shaping this shift. Legal specialist Rebecca Rettig said teams often pursue these decisions because they want regulatory clarity. She added that a no-action letter provides reasonable assurance they will not face immediate enforcement. Her argument reflects the broader industry view that clarity reduces unnecessary legal risk for token issuers.
