SEC's DePIN Clarity: $24B Sector Gets Compliance Blueprint

The U.S. Securities and Exchange Commission has granted a rare no-action letter to Fuse, a decentralized physical infrastructure network (DePIN) project built on the Solana blockchain, marking a significant regulatory milestone for the fast-evolving DePIN sector. The decision, announced in late November 2025, provides legal clarity for the FUSE token, which is designed as a utility token rather than a security, and signals a potential shift in the SEC's approach to crypto regulation under its new leadership.

The SEC's no-action letter, signed by deputy chief counsel Jonathan Ingram, confirms the agency will not recommend enforcement action if Fuse proceeds with the sale of its FUSE tokens under the described conditions. This follows a formal request submitted by Fuse to the SEC's Division of Corporation Finance on Nov. 19, 2025, seeking assurance that its token offering would not violate securities laws. The FUSE token functions as a reward mechanism for users maintaining Fuse's infrastructure, such as installing solar panels or utilizing electric vehicle chargers, and is redeemable only through third-party venues at market rates. Legal experts note that the token's utility-driven design - offering no ownership rights, dividends, or profit expectations - strongly aligns with non-security classifications under the Howey Test.

This approval is the second such no-action letter for a DePIN project in recent months, following a similar grant to DoubleZero in August 2025. The move has been interpreted as part of a broader regulatory strategy under SEC Chair Paul Atkins, who has emphasized a more measured approach to crypto oversight compared to the enforcement-heavy tactics of his predecessor, Gary Gensler. Commissioner Hester Peirce, a vocal advocate for crypto innovation, now leads the agency's crypto task force, fostering improved communication between regulators and industry participants.

The decision carries substantial implications for the DePIN sector, which leverages blockchain to incentivize real-world infrastructure contributions. With a market value exceeding $24 billion, the sector has faced regulatory uncertainty in the U.S. due to the absence of clear legal frameworks. Fuse's approval offers a roadmap for compliance, demonstrating how utility tokens can be structured to avoid securities classification while driving sustainable energy initiatives. The project's focus on green energy and decentralized infrastructure aligns with global trends toward decarbonization, further enhancing its appeal to environmentally conscious investors.

Market reactions to the SEC's decision have been positive. The FUSE token, which had previously declined from an all-time high of $2.13 in 2022 to around $0.0077, has shown renewed momentum, with a market capitalization of approximately $2.4 million and total value locked exceeding $68 million. Analysts suggest the regulatory clarity could bolster long-term confidence in the token, particularly as the DePIN space matures.

While the no-action letter does not establish binding legal precedent, it represents a critical step toward harmonizing crypto innovation with regulatory expectations. The SEC's recent actions - including granting similar relief to crypto custodians - indicate a growing willingness to engage constructively with the industry. As Solana continues to attract DePIN projects with its scalability and low transaction costs, this regulatory endorsement may catalyze further development in the ecosystem.