Regulatory Clarity for Blockchain Incentive System
The U.S. Securities and Exchange Commission (SEC) has issued a no-action letter to Fuse Crypto Limited, granting the company rare regulatory relief that allows its energy-rewards token program to proceed without registering the token as a security.
The decision, dated November 24, 2025, offers Fuse a significant degree of legal certainty as it works to launch its blockchain-based incentive system.
Conditions and Limitations of the No-Action Letter
The no-action letter, issued by the SEC’s Division of Corporation Finance, states that the agency will not recommend enforcement action if Fuse offers and sells its token under the conditions described in its submission. The company filed its incoming request on November 19, 2025.
Under the relief, Fuse will be permitted to offer its token without registration under Section 5 of the Securities Act of 1933 and without listing the token as a class of equity securities under Section 12(g) of the Securities Exchange Act of 1934, so long as the company strictly follows the facts and limitations outlined in its request.
However, the SEC emphasized that the no-action position applies only to the factual scenario Fuse presented. In the letter, Jonathan A. Ingram, Deputy Chief Counsel of the Division, made clear that any deviation from those facts could lead to a different enforcement conclusion.
“This position is based on the representations made to the Division in your letter,” he wrote, stressing that the relief is narrow and contingent.
Importantly, the SEC’s letter does not determine whether Fuse’s token is legally a security. Instead, it solely confirms that the agency will not pursue charges based on the specific structure Fuse proposed.
Broader Implications and Precedents
The approval underscores a broader shift in the SEC’s regulatory posture toward crypto assets under the Trump administration. It follows a similar no-action decision granted earlier this year to DoubleZero, reflecting the agency’s increasing willingness to offer tailored clarity for token projects under certain conditions.
For Fuse Crypto, the decision provides a green light to expand its energy-reward model, an initiative designed to incentivize energy efficiency using blockchain-based rewards, while navigating one of the industry’s most complex regulatory landscapes.