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SEC Grants No-Action Relief to Solana-Based Fuse, Offering Regulatory Protection for FUSE Token

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The US Securities and Exchange Commission has issued a no-action letter to Solana-based decentralized bodily infrastructure community (DePIN) challenge Fuse, offering uncommon regulatory safety for its FUSE token.

Key Takeaways:

  • The SEC granted Fuse a no-action letter, confirming it is not going to advocate enforcement if the FUSE token is bought as described.
  • This is the second DePIN challenge in latest months to obtain such reduction.
  • Industry figures say the SEC’s new management is driving a extra constructive method to token oversight.

Fuse submitted its request to the SEC’s Division of Corporation Finance on Nov. 19, in search of assurance that the company wouldn’t advocate enforcement if it moved ahead with the supply and sale of FUSE.

The challenge emphasised that its token is designed strictly for community participation, not speculative investing, and capabilities as a reward for customers who keep Fuse’s distributed infrastructure. FUSE might solely be redeemed by way of third-party venues at prevailing market charges.

SEC Says It Won’t Pursue Enforcement Against Fuse Token Sales

In a letter signed Monday by deputy chief counsel Jonathan Ingram, the SEC agreed.

“Based on the information introduced, the Division is not going to advocate enforcement motion… if Fuse presents and sells the Tokens within the method and underneath the circumstances described,” Ingram wrote.

The determination marks the second time in latest months that the SEC has granted no-action reduction to a DePIN challenge.

In August, the company issued a similar letter to Double Zero, shocking many within the business and fueling optimism that the SEC, now led by Chair Paul Atkins, is taking a extra measured method after years of stress underneath former chair Gary Gensler.

DoubleZero co-founder Austin Federa described the SEC’s course of as “skilled, diligent, and with out crypto animosity,” calling the approval “extremely coveted.”

No-action letters are routine in conventional finance however extraordinarily uncommon in crypto, making these back-to-back approvals particularly notable.

The SEC’s management reshuffle earlier this yr positioned Commissioner Hester Peirce, lengthy thought-about one of many business’s most pro-innovation voices, in control of the company’s crypto job power.

Since then, the company has taken steps that many founders say resemble a return to sensible rulemaking quite than aggressive enforcement.

Why No-Action Letters Matter

Legal consultants say Fuse’s approval was easy. Consensys lawyer Bill Hughes wrote that “not a lawyer in crypto” would classify FUSE as a safety, given its consumptive design and slim utility.

Solana-ecosystem legal professional Rebecca Rettig stated crypto groups search no-action letters as a result of they provide “regulatory readability,” an inexpensive assurance that launching a token is not going to set off speedy SEC motion. “It’s a sort of regulatory cowl,” she stated.

The doc doesn’t set up new authorized precedent, however it underscores a broader shift.

In latest months, the SEC has additionally granted no-action reduction to sure crypto custodians missing banking charters, one other space that had been logjammed underneath earlier management.

Meanwhile, Atkins is considering establishing a “token taxonomy” on the federal regulator in an effort to make clear the classification of particular crypto belongings.

Earlier this month, Atkins introduced that he’s weighing the creation of a token taxonomy “anchored within the longstanding Howey funding contract securities evaluation” as the following section of the SEC’s “Project Crypto” initiative.

The submit SEC Grants No-Action Relief to Solana-Based Fuse, Offering Regulatory Protection for FUSE Token appeared first on Cryptonews.

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