SEC Issues No-Action Letter to Fuse for FUSE Token

The U.S. Securities and Exchange Commission has issued a no-action letter to Fuse, a Solana-based decentralized physical infrastructure network project, confirming it will not recommend enforcement action against the company's planned sales of its FUSE token. The decision, announced on Monday, provides regulatory clarity for Fuse's token distribution and marks the second such letter granted to a DePIN project in recent months.

Fuse, which operates in the green energy sector, submitted its request to the SEC's Division of Corporation Finance on November 19. The company described the FUSE token as a utility reward for participants who contribute to its network, such as by installing rooftop solar panels, electric vehicle chargers, or other distributed energy resources. These tokens incentivize sustainable energy practices and can only be redeemed at an average market price through third-party platforms, with values capped by Fuse's profit margins and tied to actual consumption rather than speculative gains. Fuse emphasized that the token functions like a rebate for energy-efficient participation, not an investment dependent on the company's overall success.