Key Highlights
- The U.S. Securities and Exchange Commission (SEC) issued a formal no-action letter to Fuse Energy, stating that it will not recommend enforcement action
- This letter will open the door for the company to offer and sell its token, clarifying that it is not a security
- This decision will provide a much-needed regulatory clarity for the multi-billion-dollar DePIN sector
On November 24, the Securities and Exchange Commission (SEC) issued a no-action letter to Fuse Crypto Limited, the company behind the Solana-based Fuse Energy project.
🚨NEW: The @SECGov just issued a no-action letter to @fuseenergy, the Solana-based DePin project building a decentralized energy grid. The regulator says Fuse’s token offer doesn’t constitute an investment contract because its value is tied directly to its utility inside the… https://t.co/ZFa7wucwpV pic.twitter.com/bDnk2HZWO4
— Eleanor Terrett (@EleanorTerrett) November 24, 2025
According to the official website, this letter states that the agency will not recommend enforcement action against Fuse for offering and selling its native token.
“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 without registration under Section 5 of the Securities Act and does not register the Tokens as a class of equity securities under Section 12(g) of the Exchange Act. Capitalized terms have the same meanings as defined in your letter,” stated in the official letter.
This statement from the SEC is a huge decision and is seen as a major victory for the “DePIN” sector (also known as Decentralised Physical Infrastructure Networks), which uses blockchain-based tokens to manage real-world physical infrastructure.
SEC’s No-Action Letter Gives Clean Chit to Fuse’s Energy-Based Token
This development comes from a formal process known as a no-action letter request. Companies can ask the agency’s staff for assurance that a specific planned activity will not lead to an enforcement lawsuit under federal securities laws.
Fuse Crypto Limited, a U.K.-registered company focused on renewable energy, submitted its detailed request in August. In their submission, the company clearly explained how the token would function, how it distributed, and its main function within the network.
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— Bill Hughes 🦊 (@BillHughesDC) November 24, 2025
“For the foregoing reasons, we respectfully request, on behalf of Fuse, that the Staff confirm that it will not recommend that the SEC take enforcement action if Fuse offers the Tokens in the manner and under the circumstances described herein without registration under the Securities Acts,” stated in the filing.
Like any other digital asset, the agency has taken the help of a popular legal standard known as the Howey test, derived from a 1946 Supreme Court case. This test helps the agency to find out what constitutes an investment contract or a security.
The company argued that its token is not encouraged to buy it with the expectation of profiting from its price momentum. Instead, it is being promoted as a digital reward. According to the DePIN project, users can earn tokens through the Fuse Energy mobile app by performing specific, verifiable tasks that help the energy grid. These tasks include reducing their energy consumption during times of high demand or generating solar power from their own panels.
The agency’s staff agreed that people who hold Fuse’s tokens do not expect profits primarily from the work of the network’s management team. The token’s value is linked directly to its usefulness within the network itself.
Holders can redeem tokens for tangible benefits like discounts on their energy bills, priority access for home electrification upgrades, or to offset their carbon footprint. The token does not provide any dividends, ownership, or voting rights in the company. While the token can be traded on some crypto exchanges, its main purpose is to be used within the Fuse system.
