Regulator signals a more balanced approach as DePIN projects seek clarity on token compliance
The U.S. Securities and Exchange Commission has issued a second no-action letter to a decentralized physical infrastructure network (DePIN) project, granting regulatory assurance to the Solana-based network Fuse. The decision marks another important step for crypto teams designing utility-based tokens and looking to avoid enforcement risks.
SEC Provides Regulatory Cover for FUSE Token
Fuse requested the ruling in November, asking the SEC’s Division of Corporation Finance to confirm it would not recommend enforcement if its token FUSE continued trading on third-party marketplaces. The team emphasized that the token exists strictly for network utility, rewarding participants who actively maintain the Fuse infrastructure.
In its response, the SEC said it would not pursue enforcement based on the facts presented. The agency noted that FUSE can only be redeemed through third parties at an average market price, reinforcing its purpose as a consumptive asset rather than a speculative investment.
The SEC’s letter stated that, “the Division will not recommend enforcement action… if Fuse offers and sells the Tokens in the manner described.”
A Rare Step as DePIN Projects Gain Regulatory Momentum
The move follows a similar no-action letter issued to DoubleZero earlier this year, a decision crypto analysts viewed as a sign of shifting attitudes under the SEC’s new leadership. Under Chairman Paul Atkins and its updated crypto task force headed by Hester Peirce, the agency has begun taking a more balanced, less adversarial stance toward blockchain projects.
Legal professionals noted that such letters are routine in traditional finance but “very rare” in crypto, making Fuse’s approval notable.
3/ 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. It's a kind of "regulatory cover"
Industry lawyers said many token projects actively seek these letters to reduce uncertainty.
“Why do crypto teams want them? Regulatory clarity,” one legal expert explained, adding that a no-action letter gives projects reasonable assurance that they will not face immediate enforcement for securities violations.
Crypto attorneys also pointed out that Fuse’s case was relatively straightforward. One legal analyst commented that “no one familiar with Howey would have considered this token a security,” reinforcing that the utility-focused structure made the approval expected.
Industry Reaction Highlights Shift in SEC Tone
Crypto founders, long critical of previous leadership, say the Fuse decision reflects a significantly improved regulatory environment. Recent no-action letters for token issuers and crypto custodians suggest the agency is now offering clearer operational guidelines, something industry participants have called for over several years.
The Fuse ruling adds to growing evidence that DePIN networks—and utility tokens more broadly—may finally be gaining the regulatory clarity needed to scale in the United States.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
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