The U.S. Securities and Exchange Commission (SEC) has provided a significant measure of regulatory certainty to Fuse, a decentralized physical infrastructure network (DePIN) project on the Solana blockchain. The agency issued a “no-action letter,” assuring the project that it will not face enforcement action for the offer and sale of its native FUSE token.

This development marks the second time in recent months that the SEC has granted such a letter to a DePIN project, following a similar decision for DoubleZero. These actions are widely seen as a positive signal for an industry that has long sought clearer regulatory guidelines.

A Path to Clarity

Fuse initiated the process on November 19, when it submitted a letter to the SEC’s Division of Corporation Finance. The project sought official confirmation that the agency would not recommend enforcement if it continued to sell and offer its FUSE tokens. In its correspondence, Fuse argued that its token is designed for network utility and consumption, not for financial speculation, and can only be redeemed for an average market price through third parties.

In response, Jonathan Ingram, the Division’s deputy chief counsel, confirmed the agency’s position. He stated that based on the facts presented, the Division would not recommend enforcement action against Fuse for its token activities as described in its letter.

Expert Perspectives Offer Nuance

No-action letters are highly sought after in the crypto space. Rebecca Rettig of Jito Labs explained that projects seek them for “regulatory clarity,” as they provide reasonable assurance against immediate securities law violations. She described it as a form of “regulatory cover” for token issuers.

However, the decision wasn’t seen as a groundbreaking precedent by everyone. Consensys lawyer Bill Hughes commented that it was an “easy case,” suggesting that few crypto lawyers would have considered the FUSE token a security in the first place based on the Howey Test criteria.

The rarity of these letters in crypto, compared to traditional finance, was previously highlighted by DoubleZero co-founder Austin Federa. After receiving his project’s letter, he noted that the process was professional and diligent, with no “crypto animosity” from the agency.

A Shifting Tone at the SEC?

This series of no-action letters coincides with a perceived shift in the SEC’s approach to digital assets following a leadership change in April. Under the new chair, Paul Atkins, and with crypto-proponent Hester Peirce leading its crypto task force, the agency appears to be taking a more balanced stance.

This contrasts sharply with the previous era under former chair Gary Gensler, which many in the industry described as hostile. The recent interactions suggest a move toward providing the clear operational guidelines that crypto founders and businesses have been requesting for years.