SEC Greenlights Solana-Based Fuse: Regulatory Shield Unlocks FUSE Token Potential
Regulatory barriers crumble as SEC grants no-action relief to Solana's Fuse network
The Game-Changer for DeFi Compliance
FUSE token just scored the regulatory equivalent of a golden ticket. The SEC's no-action relief means institutional investors can finally breathe easy—no more regulatory boogeyman hiding in the shadows. Solana's infrastructure gets another legitimacy boost while traditional finance scrambles to understand what just happened.
Breaking Down the Regulatory Barrier
This isn't just paperwork—it's precedent. The SEC effectively acknowledged that some digital assets can operate outside strict securities regulations. Fuse's Solana-based architecture passed muster where others failed, proving that regulatory compliance and blockchain innovation aren't mutually exclusive concepts.
Market Implications Unleashed
Watch for immediate ripple effects across the crypto landscape. Projects with similar tokenomics now have a roadmap to follow, while exchanges get clearer guidance on what they can list without fearing regulatory backlash. The timing couldn't be better—just as traditional finance was getting comfortable saying 'crypto' without whispering.
Because nothing says 'mature asset class' like needing government permission slips to innovate.
SEC Says It Won’t Pursue Enforcement Against Fuse Token Sales
In a letter signed Monday by deputy chief counsel Jonathan Ingram, the SEC agreed.
“Based on the facts presented, the Division will not recommend enforcement action… if Fuse offers and sells the Tokens in the manner and under the circumstances described,” Ingram wrote.
The decision marks the second time in recent months that the SEC has granted no-action relief to a DePIN project.
In August, the agency issued a similar letter to Double Zero, surprising many in the industry and fueling Optimism that the SEC, now led by Chair Paul Atkins, is taking a more measured approach after years of tension under former chair Gary Gensler.
DoubleZero co-founder Austin Federa described the SEC’s process as “professional, diligent, and without crypto animosity,” calling the approval “highly coveted.”
No-action letters are routine in traditional finance but extremely rare in crypto, making these back-to-back approvals especially notable.
The SEC’s leadership reshuffle earlier this year placed Commissioner Hester Peirce, long considered one of the industry’s most pro-innovation voices, in charge of the agency’s crypto task force.
Since then, the agency has taken steps that many founders say resemble a return to practical rulemaking rather than aggressive enforcement.
Why No-Action Letters Matter
Legal experts say Fuse’s approval was straightforward. Consensys lawyer Bill Hughes wrote that “not a lawyer in crypto” would classify FUSE as a security, given its consumptive design and narrow utility.
Latest from the @SECGov: Fuse's token is not a security that requires registration to offer to the public because:
1) Fuse won't sell tokens to the public;
2) tokens are earned as compensation for participation in the grid consumption efficiency goals of the network (including… pic.twitter.com/5XgjUGy69Z
Solana-ecosystem attorney Rebecca Rettig said crypto teams seek no-action letters because they offer “regulatory clarity,” a reasonable assurance that launching a token will not trigger immediate SEC action. “It’s a kind of regulatory cover,” she said.
The document does not establish new legal precedent, but it underscores a broader shift.
In recent months, the SEC has also granted no-action relief to certain crypto custodians lacking banking charters, another area that had been logjammed under previous leadership.
Meanwhile, Atkins is considering establishing a “token taxonomy” at the federal regulator in an effort to clarify the classification of specific crypto assets.
Earlier this month, Atkins announced that he is weighing the creation of a token taxonomy “anchored in the longstanding Howey investment contract securities analysis” as the next phase of the SEC’s “Project Crypto” initiative.
