The US Securities and Exchange Commission (SEC), which has taken more moderate steps for the cryptocurrency sector after Gary Gensler left and was replaced by crypto-friendly Paul Atkins, has made a more positive decision for an altcoin.
Accordingly, the SEC ruled that the Solana (SOL)-based Fuse Energy token is not a security.
The SEC issued its second no-action letter to cryptocurrency projects in recent months, DePIN, after sending a similar no-action letter to DoubleZero a few months earlier, providing regulatory protection for the altcoin from sanctions.
The SEC sent a similar no-action letter to Solana-based DePIN project FUSE as it did to DoubleZero.
Accordingly, the SEC sent a no-action letter to Fuse Energy stating that its native token, FUSE, does not constitute an investment contract under securities law.
The SEC’s decision to close the case without taking any action or imposing any penalties indicates that the FUSE token is not considered under federal securities laws.
“Incredible news: The SEC today issued a Letter of No Action for Fuse Energy’s token. It is the native utility token for The Energy Network, built on Solana. Full details can be found in the project whitepaper published today. This milestone is the culmination of months of productive work with the SEC, and Fuse is proud to play a role in ensuring regulatory clarity for cryptocurrencies in the US. Momentum is building,” Fuse Energy said in a statement.
At this point, the decision also stands out as a step that reduces uncertainty for cryptocurrency projects and investors.
Cryptocurrency journalist Eleanor Terrett commented that this decision was based on the finding that the token’s value is tied to its actual utility within the network rather than investors’ expectation of profit.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/sec-grants-second-approval-sec-approves-this-altcoin-closes-case/
