The U.S. Securities and Exchange Commission
has issued a seldom-granted no-action letter
to Fuse, a decentralized physical infrastructure network (DePIN) initiative operating on the
Solana
blockchain. This marks a notable regulatory breakthrough for the rapidly advancing DePIN industry. Announced in late November 2025, the decision clarifies the legal standing of the FUSE token, recognizing it as a utility token rather than a security, and
suggests a possible change
in the SEC’s stance on digital asset regulation under its current leadership.
The no-action letter from the SEC, signed by deputy chief counsel Jonathan Ingram,
states the agency will not pursue enforcement
if Fuse moves forward with its FUSE token sale as outlined. This comes after Fuse formally requested guidance from the SEC’s Division of Corporation Finance on Nov. 19, 2025,
asking for confirmation
that its token launch would not breach securities regulations. The FUSE token
serves as an incentive system
for participants who support Fuse’s infrastructure—such as by setting up solar panels or using EV charging stations—and can only be exchanged via third-party platforms at prevailing market prices. Legal analysts
highlight that the token’s focus on utility
—with no rights to ownership, dividends, or profit sharing—closely matches the criteria for non-securities under the Howey Test.
This marks the second no-action letter for a DePIN project in recent months,
following a comparable approval
for
DoubleZero
in August 2025. Observers see this as part of a broader regulatory direction under SEC Chair Paul Atkins, who has
advocated for a more balanced regulatory stance
on crypto, in contrast to the enforcement-centric approach of former chair Gary Gensler. Commissioner Hester Peirce, a prominent supporter of crypto advancement,
now heads the agency’s crypto task force
, promoting better dialogue between the SEC and industry stakeholders.
This decision has far-reaching consequences for the DePIN sector, which utilizes blockchain to motivate contributions to real-world infrastructure. With the sector’s market capitalization surpassing $24 billion, it has
grappled with regulatory ambiguity
in the U.S. due to a lack of definitive legal guidelines. The green light for Fuse
provides a compliance blueprint
, illustrating how utility tokens can be structured to avoid being classified as securities while advancing sustainable energy projects. Fuse’s emphasis on renewable energy and decentralized infrastructure resonates with global decarbonization efforts, making it especially attractive to environmentally minded investors.
The SEC’s ruling has been met with optimism in the market. After falling from a peak of $2.13 in 2022 to about $0.0077, the FUSE token
has experienced a resurgence
, now boasting a market cap near $2.4 million and a total value locked above $68 million. Experts believe that this regulatory certainty could strengthen long-term investor confidence in the token as the DePIN landscape evolves.
Although the no-action letter does not create binding legal precedent, it marks a pivotal move toward aligning crypto innovation with regulatory standards. The SEC’s recent steps—
such as granting similar exemptions
to crypto custodians—reflect a growing openness to working collaboratively with the digital asset sector. As Solana continues to draw DePIN projects thanks to its scalability and low fees, this regulatory support could spur further growth within the ecosystem.