• SEC’s second DePIN no-action letter in months signals shifting regulatory landscape for crypto infrastructure projects.

• Fuse’s FUSE token rewards network participants without public sales, emphasizing utility over investment.

• Under new SEC leadership since April 2025, the agency has adopted a more balanced approach, issuing similar relief to projects like DoubleZero and non-bank crypto custodians.

Discover how the SEC’s no-action letter to Fuse provides regulatory clarity for DePIN projects in 2025. Explore implications for Solana tokens and crypto infrastructure growth. Read now for expert insights on this milestone.

What is the SEC’s No-Action Letter to Fuse?

The SEC’s no-action letter to Fuse is an official response from the agency’s Division of Corporation Finance, stating it will not recommend enforcement action against the Solana DePIN project for offering and selling its FUSE tokens under specified conditions. Issued on Monday, the letter follows Fuse’s November 19 submission, where the project detailed FUSE’s role in rewarding network maintenance without public sales or speculative intent. This assurance allows Fuse to operate with reduced regulatory risk, focusing on decentralized physical infrastructure networks.

The letter underscores FUSE’s design for consumptive utility, redeemable only at market prices through third parties, aligning with SEC guidelines that distinguish functional tokens from securities.

The latest SEC no-action letter comes just a few months after the agency issued a similar “highly coveted” letter to DoubleZero, which was seen as a result of a new, more crypto-friendly leadership at the SEC. At the time, DoubleZero co-founder Austin Federa said such letters are common in traditional finance but are “very rare” in the crypto space. “It was a months-long process, but we found the SEC to be quite receptive, we found them to be quite professional, quite diligent, there was no crypto animosity,” Federa noted.

The SEC was put under new leadership in April 2025, after Paul Atkins was sworn in as the 34th chairman, and the agency has since been seen taking a more balanced approach to crypto. As part of the leadership, crypto-friendly Hester Peirce also heads up the agency’s crypto task force.

How Do No-Action Letters Provide Regulatory Clarity for DePIN Projects?

No-action letters from the SEC offer projects like Fuse a form of regulatory assurance, confirming that their operations, including token issuance, will not trigger enforcement under securities laws if they adhere to outlined parameters. For DePIN initiatives, which rely on tokens to incentivize physical infrastructure contributions, this clarity is crucial. It separates utility-focused tokens from investment contracts, as defined by the Howey Test, reducing the fear of retroactive penalties that have plagued the crypto sector.

Rebecca Rettig, a legal representative of Solana MEV infrastructure platform Jito Labs, explained on X that no-action letters are sought after for their “regulatory cover.” “Why do crypto teams want them? ‘Regulatory clarity.’ If you’re planning to issue a token, a NAL provides reasonable assurance you won’t face immediate enforcement for violations of securities laws,” she wrote. This process demonstrates the SEC’s evolving scrutiny, prioritizing factual utility over speculative elements.

In Fuse’s case, the Division of Corporation Finance, led by deputy chief counsel Jonathan Ingram, reviewed the project’s submission and affirmed no enforcement recommendation based on the presented facts. This aligns with broader trends: the same month DoubleZero received its letter, the SEC issued similar relief for non-bank crypto custodians, providing guidelines for compliant operations. These developments reflect a pragmatic shift, with the agency hosting a privacy and financial surveillance roundtable in December 2025 to further engage the industry.

Expert analysis from Consensys lawyer Bill Hughes via X reinforces that Fuse’s token structure made this an “easy case.” “The takeaway is that there is not a lawyer in crypto that would have thought this token was a security. And maybe not even any lawyer who is merely familiar with Howey,” Hughes said. Such endorsements highlight the letter’s role in bolstering confidence without setting sweeping precedents.

Frequently Asked Questions

What Does the SEC No-Action Letter Mean for Solana DePIN Projects Like Fuse?

The SEC no-action letter to Fuse means Solana-based DePIN projects can issue utility tokens like FUSE for network rewards without immediate securities enforcement risks, provided they avoid public sales and speculation. This 2025 milestone, following the DoubleZero precedent, promotes infrastructure innovation while enforcing compliance with utility-focused designs, as confirmed by the Division of Corporation Finance.

Why Is the SEC Issuing More No-Action Letters to Crypto Projects in 2025?

The SEC is issuing more no-action letters to crypto projects in 2025 due to its new leadership under Chairman Paul Atkins and Hester Peirce’s crypto task force, fostering a balanced regulatory environment. This approach addresses industry calls for clarity, as seen in letters to Fuse, DoubleZero, and non-bank custodians, ensuring tokens for genuine utility receive protection from enforcement while upholding securities laws.

Key Takeaways

• Regulatory Assurance for Utility Tokens: The SEC’s letter to Fuse confirms FUSE’s non-security status when used for DePIN rewards, enabling safer network operations without public investment sales.
• Shift Under New Leadership: Since April 2025, the SEC’s crypto-friendly stance has led to multiple no-action letters, contrasting prior hostility and supporting projects like DoubleZero and custodians with clear guidelines.
• Industry-Wide Implications: These letters provide a blueprint for DePIN and similar ventures; teams should consult legal experts to align token models with SEC criteria for ongoing clarity.

Conclusion

The SEC’s no-action letter to Fuse marks a pivotal step in providing regulatory clarity for DePIN projects and utility tokens in the crypto ecosystem, building on precedents like DoubleZero and non-bank custodians. With new leadership driving a more equitable approach since 2025, the industry gains essential guidance to innovate responsibly. As the SEC continues engagements, such as its December roundtable, stakeholders should monitor developments to leverage this evolving framework for sustainable growth.