The SEC has issued its second “no-action letter” in recent months to a decentralized physical infrastructure network (DePIN) project, granting its native token a degree of regulatory protection from enforcement.
The letter was addressed to Fuse, a Solana-based DePIN project that distributes its FUSE token as a reward to participants who help maintain the network.
Fuse first contacted the SEC’s Division of Corporation Finance on Nov. 19, seeking assurance that the agency would not recommend enforcement action if FUSE tokens continued trading on third-party marketplaces.
In its request, the project emphasized that FUSE is built for utility and consumption within the network — not speculation — and can only be redeemed at an average market price through external platforms.
“Based on the facts presented, the Division will not recommend enforcement action to the Commission if, in reliance on your opinion as counsel, Fuse offers and sells the Tokens in the manner and under the circumstances described in your letter,” wrote Jonathan Ingram, deputy chief counsel of the Division of Corporation Finance, on Monday.
The SEC’s latest no-action letter follows another “highly coveted” approval issued just months ago to Double Zero — a move widely viewed as a sign of increasingly crypto-friendly leadership at the agency.
At the time, DoubleZero co-founder Austin Federa noted that while such letters are common in traditional finance, they remain “very rare” in the crypto industry.
“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.”
The SEC has adopted a more measured stance toward crypto since April, when Paul Atkins was sworn in as the agency’s 34th chair. Under the new leadership, Commissioner Hester Peirce — known for her crypto-friendly views — now oversees the SEC’s crypto task force.
No-action letters offer sought-after clarity
On X, Rebecca Rettig, counsel for Solana MEV platform Jito Labs, noted that no-action letters are highly valued in the crypto sector.
“Why do crypto teams want them? Regulatory clarity,” she wrote. “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.’”
Fuse ruling was expected, says crypto lawyer
Despite the attention, the Fuse no-action letter isn’t viewed as groundbreaking.
Consensys lawyer Bill Hughes said on Monday that the case was “an easy” one given the nature of the token.
“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 merely familiar with Howey,” he wrote on X.
Industry applauds SEC’s new direction
After years in which many U.S. crypto builders felt targeted under former chair Gary Gensler, the SEC’s engagement with Fuse underscores a sharp shift in tone.
The same month Double Zero received its no-action relief, the SEC also granted similar guidance to crypto custodians that aren’t banks.
While these firms must still meet strict requirements, the letter outlines clear conditions for how they can handle digital assets — the kind of practical rulebook the industry has long pushed for.
