The US Securities and Exchange Commission’s Division of Corporation Finance provided a no-action letter to Fuse Crypto Limited on November 24.
The document stated that the agency does not intend to pursue enforcement if the FUSE token is issued and distributed under scenarios described in Fuse’s submission on November 19.
This step confirms that registration of the FUSE token as a security under Section 5 of the Securities Act, or as equity under Section 12(g) of the Exchange Act, is not necessary under the outlined conditions.
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The FUSE token was created to reward activity on a decentralized network for energy sharing built on Solana
Users earning FUSE must take part in activities such as generating solar electricity or charging electric vehicles. Instead of buying tokens for profit reasons, network contributors receive them as incentives for participation.
The SEC acknowledged that FUSE derives value from use within the system, not financial speculation.
The Fuse project described its token as a rewards model that functions like loyalty points, redeemable at current rates but not tied to the company’s overall outcomes. This arrangement met the requirements of the Howey test because no profits were anticipated from the efforts of other parties.
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