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Weekly Crypto Regulation Roundup: SEC Clears Solana’s Fuse Token and Trump Eyes Crypto-Friendly Fed Chair

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It’s been one other consequential week in Washington and past, with U.S. regulators sending blended however significant indicators throughout crypto, AI, and monetary coverage. From the SEC greenlighting a Solana-based token to the prospect of a crypto-friendly Federal Reserve chair, the regulatory local weather is shifting quick—notably as policymakers grapple with rising applied sciences which might be outpacing current frameworks.

SEC Grants Fuse a Rare No-Action Letter

The large headline got here from the U.S. Securities and Exchange Commission, which issued a no-action letter to Solana-based DePIN project Fuse—an uncommon step for a blockchain undertaking searching for readability round token gross sales.

Fuse requested the SEC’s Division of Corporation Finance on Nov. 19 to verify it could not advocate enforcement motion over the provide and sale of its FUSE token. The undertaking emphasised that FUSE isn’t pitched as a speculative asset: it’s strictly a community participation token, distributed as a reward to customers who preserve the protocol’s decentralized infrastructure. The SEC agreed.

In a letter signed by deputy chief counsel Jonathan Ingram, the regulator said it could not pursue enforcement “based mostly on the details introduced” if Fuse adheres to the guardrails it outlined.

Additionally, the token can solely be redeemed by way of third-party venues at market charges, exhibiting the SEC’s concentrate on eradicating any investment-like traits.

This marks the second DePIN-related no-action letter in current months. While not precedent-setting, the choice is a helpful datapoint: when tokens are tightly scoped to utility and distribution is managed, the SEC seems extra open to reduction. For initiatives constructing real-world infrastructure on-chain, it’s one of many clearest regulatory indicators we’ve seen in months.

Trump’s Top Fed Pick Has Deep Crypto Ties

Crypto markets could quickly have a sympathetic voice on the very prime of U.S. financial coverage. Kevin Hassett—director of the White House National Economic Council and longtime Trump ally—has emerged as the leading candidate to exchange Jerome Powell as Federal Reserve chair.

What’s putting is Hassett’s historical past with digital belongings. He has publicly engaged with the crypto sector, consulted with coverage teams related to the area, and indicated openness to digital-asset innovation.

Trump’s advisers describe him as somebody whom the president trusts deeply on interest-rate coverage—notably on the query of chopping extra aggressively than Powell. Hassett has additionally reportedly indicated he would settle for the function if chosen.

If appointed, this might be essentially the most crypto-friendly Fed chair in U.S. historical past. While the Fed just isn’t a crypto regulator, its stance on greenback liquidity, stablecoins, and cost programs has huge downstream results. A professional-innovation chair might spur better openness throughout different companies—or on the very least, scale back friction.

Bipartisan Bill Targets Rising AI-Powered Fraud

AI-generated scams are surging, and Congress is taking discover. This week, lawmakers introduced the AI Fraud Deterrence Act, a bipartisan proposal from Rep. Ted Lieu (D-CA) and Rep. Neal Dunn (R-FL). The invoice seeks to impose more durable penalties on crimes dedicated utilizing synthetic intelligence—notably impersonation schemes, deepfakes, automated theft, and coordinated fraud rings.

The laws can also be explicitly tied to monetary markets and crypto, the place AI-powered fraud is rising at an alarming charge. High-profile circumstances involving deepfake video scams, impersonation bots, and automated phishing rings have intensified strain on lawmakers to intervene.

The invoice’s broader message is obvious: manipulation, impersonation, and automated fraud utilizing AI instruments will face harsher federal penalties. Expect this framework to evolve shortly, given the sharp rise in AI-driven schemes throughout exchanges and Web3 platforms.

CFTC Pushes for New Prediction Markets Framework

Finally, on the CFTC, Commissioner Caroline Pham is making strikes to carry prediction markets into sharper regulatory focus.

Pham introduced that the agency is seeking nominations for its new CEO Innovation Council, a physique designed to advise on rising markets and frontier monetary applied sciences. One of the council’s early priorities would be the quickly evolving prediction markets sector—an area that has grown too massive and too influential for federal regulators to disregard.

Through a Nov. 25 press launch, Pham invited public nominations and inspired business stakeholders to suggest subjects the council ought to prioritize. With prediction markets more and more touching politics, finance, sports activities, and crypto, the CFTC is clearly making ready a extra structured method.

This comes as platforms like Polymarket proceed to develop and entice mainstream consideration, forcing regulators to rethink how forecasting markets match inside current derivatives legislation.

The Big Picture

From the SEC’s cautious openness to utility-focused tokens, to Congress tightening the screws on AI-based crime, to the CFTC’s try to modernize its oversight, the regulatory ecosystem is shifting in actual time.

But essentially the most consequential growth could also be Trump’s obvious curiosity in appointing a Fed chair aligned with crypto innovation. That appointment would reverberate by way of each nook of economic coverage—from stablecoins to international greenback rails to funds innovation.

The put up Weekly Crypto Regulation Roundup: SEC Clears Solana’s Fuse Token and Trump Eyes Crypto-Friendly Fed Chair appeared first on Cryptonews.

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