In a significant regulatory advance for the decentralized physical infrastructure networks (DePIN) sector, Fuse Crypto has received a no-action letter from the U.S. Securities and Exchange Commission (SEC). This letter, issued on November 24, allows the firm to proceed with offering its ENERGY token—built on the Solana blockchain—without the need to register it as a security under current U.S. laws.
The SEC”s no-action letter effectively assures Fuse that it will not face enforcement actions concerning the sale and distribution of the ENERGY token, as outlined in its submission. This development is particularly impactful for the DePIN sector, which is valued at approximately $24.4 billion, according to data from CoinMarketCap.
The SEC”s decision follows a comprehensive request from Fuse made in August, where the company elaborated on the token”s intended use, design, and distribution methodology. Notably, the ENERGY token is framed as a digital reward system, distinct from an investment vehicle. Users earn these tokens through the Fuse Energy mobile application by completing specific tasks that contribute to energy efficiency, such as reducing consumption during peak hours or generating solar energy at home.
In its letter, the SEC clarified that holders of the ENERGY token do not anticipate profits derived from the efforts of others, and the token does not confer dividends, ownership rights, or voting privileges. Rather than being speculative assets, these tokens serve a practical function within the Fuse ecosystem, allowing holders to access benefits like discounts on energy bills and priority for home electrification upgrades, as well as participation in carbon offset initiatives.
Legal experts, including Bill Hughes from ConsenSys, noted that the non-security classification of the ENERGY token was anticipated from the outset, pointing to extensive discussions between Fuse and the SEC that informed this decision. Meanwhile, the SEC”s Crypto Task Force is planning a mid-December roundtable aimed at exploring privacy and financial surveillance within the digital asset landscape. Although this meeting will not lead to immediate regulatory changes, it signals the SEC”s intent to deepen its understanding of various aspects of the crypto space, including privacy mechanisms and wallet architectures.
This no-action letter is a pivotal moment not only for Fuse Crypto but also for the broader cryptocurrency and blockchain industry. It underscores a growing recognition of utility tokens and their potential to operate outside stringent securities regulations, provided they adhere to specific operational frameworks.
