- The SEC issued a no-action letter to Fuse Crypto, a Depin project on Solana.
- Fuse can offer its Solana-based ENERGY token without registering it as a security.
- ENERGY tokens provide real-world benefits such as energy bill discounts and carbon-offset perks.
On November 24, the US Securities and Exchange Commission (SEC) issued a formal no-action letter to Fuse Crypto Limited, the company behind the Solana-based Fuse Energy project.
The SEC assured Fuse that it will not recommend enforcement against it for offering and selling its native ENERGY token under the conditions described in its submission via the no-action letter.
The statement allows Fuse to proceed without registering the token as a security under Section 5 of the Securities Act or as a class of equity securities under Section 12(g) of the Exchange Act. This is a major win for the broader DePIN sector, a $24.4 billion sector, as per CoinMarketCap data.
Token’s Utility-Focused Design
The no-action letter follows Fuse’s detailed request in August, where the company discussed the token’s purpose, structure, and distribution. According to the firm, the token functions as a digital reward rather than an investment instrument.
The system grants ENERGY tokens to users through the Fuse Energy mobile app for completed tasks. It includes assisting the power grid, such as lowering energy use during peak hours or generating solar power at home.
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The SEC added in the letter that holders do not expect profit from managerial efforts, and the token does not provide dividends, ownership, or voting rights. Rather than open speculation, the token serves as a utility within the Fuse ecosystem.
Holders can redeem the token for benefits like energy bill discounts, priority access for home electrification upgrades, or carbon offset programs.
SEC’s Broader Interest in Crypto Oversight
Consensys lawyer Bill Hughes said that the non-security status of Fuse Crypto’s token was clear from the beginning. Fuse noted that the development was a result of extensive discussions with the SEC.
Meanwhile, the SEC’s Crypto Task Force has arranged a roundtable for mid-December focused on privacy and financial surveillance in digital asset markets. While the discussion will not produce new rules, it seems that the regulator wants a deeper understanding of privacy tools, wallet structures, and crypto.
Related: US Regulators Give Banks a New Tool to Fight the Stablecoin Threat
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Source: https://coinedition.com/fuse-crypto-receives-sec-no-action-letter-for-solana-based-energy-token/
