SEC Grants No-Action Letter to FUSE Token, Exempting It from Security Classification
The U.S. Securities and Exchange Commission's Division of Corporation Finance has issued a no-action letter to Fuse crypto Limited, clearing the way for its FUSE token to operate without being classified as a security. The decision hinges on the token's utility as an incentive for sustainable energy practices rather than an investment vehicle.
FUSE tokens reward participation in green initiatives like rooftop solar programs and electric vehicle charging. The SEC's determination was based on the Howey Test, which found the token does not constitute an investment contract. Fuse Crypto Limited emphasized the token's purpose is behavioral incentivization, not profit generation.
This ruling creates a potential blueprint for utility tokens with clear non-investment use cases. The decision applies strictly to Fuse's current operational framework and doesn't establish broader precedent for other digital assets.
