Key Highlights
- Fuse Crypto received an SEC no-action letter, allowing its energy-rewards token to operate without securities registration.
- The SEC said the relief depends entirely on Fuse’s stated facts and doesn’t determine whether the token is a security.
- The move reflects a broader shift in the SEC’s crypto posture under the Trump administration, following similar relief for DoubleZero.
The U.S. Securities and Exchange Commission (SEC) has informed Fuse Crypto Limited that it won’t pursue enforcement action over the company’s energy-focused blockchain token, providing the startup with the regulatory certainty it has been seeking.
The confirmation came in a no-action letter dated November 24, 2025, issued by the SEC’s Division of Corporation Finance in response to Fuse’s request that was submitted earlier that week.
A no-action letter essentially signals that the SEC will not recommend enforcement as long as the company adheres to the details it has provided, which is the outcome in this case.
The agency said it wouldn’t push for charges if Fuse sells its token without registering it under Section 5 of the Securities Act of 1933 (Securities Act) and doesn’t list it as a class of equity securities under Section 12(g) of the Securities Exchange Act of 1934 (Exchange Act).
The SEC’s Jonathan A. Ingram, Deputy Chief Counsel, Division of Corporation Finance, made it clear that the relief depends entirely on the facts Fuse provided. “This position is based on the representations made to the Division in your letter,” he wrote, adding that a change in circumstances could easily lead to a different outcome.
The letter also doesn’t settle the question of whether the token is or isn’t a security—it only clarifies the enforcement approach.
How Fuse’s token fits into its energy programs
Fuse Crypto operates in the clean-energy and distributed-infrastructure space in the United States, installing EV chargers, rooftop solar, and other grid-support equipment. Its token—called FUSE, and in some places ENERGY, is meant to reward customers who participate in programs that ease pressure on the electricity grid.
According to the company, the blockchain element helps track usage and incentives in a way traditional systems don’t.
Fuse told the SEC that “The rollout of additional decentralized energy generation and smart grid technologies creates a growing need for incentives that drive intelligent energy usage,” adding that its token is designed as a “flexible, scalable consumptive rewards system” for users and for the grid itself.
Why Fuse argued the token isn’t a security
At the center of Fuse’s argument is the Howey Test, the 1946 U.S. Supreme Court standard that determines whether something should be treated as an “investment contract” and therefore a security.
Under the test, something becomes a security when people invest money, expect a profit, and rely on someone else’s work to make that profit happen.
Fuse insisted its token simply doesn’t fit that mold. Customers don’t buy the token expecting returns; they earn it by installing solar setups, using smart-energy tools, or contributing to the grid.
“In particular, we conclude that the Token is not an investment contract, and consequently not a security, because consumers will earn Tokens for their own consumption and not based on a reasonable expectation of profit from the efforts of Fuse or others,” the company wrote.
Fuse Energy described the Energy Network as a system designed to support the scaling of electricity grids. As energy systems face increasing strain, the company says the Energy Network and its $ENERGY token create a fair and intelligent framework that identifies and rewards people who help stabilize the grid when demand is highest.
A shift in tone at the SEC
The letter to Fuse comes at a time when the SEC has been showing a noticeably different attitude toward digital assets under President Donald Trump’s administration. Over the past year, the agency has hosted crypto roundtables, closed several long-running investigations, and launched an effort called “Project Crypto,” aimed at refreshing outdated regulatory frameworks.
Earlier this month, SEC Chair Paul Atkins said the Commission is working on a “token taxonomy” that would clarify which digital assets count as securities and which do not.
Fuse’s relief is also the second token-related no-action decision in recent months. In September, the SEC granted similar treatment to DoubleZero, a DePIN (decentralized physical infrastructure network) project behind the 2Z token.
What the decision means going forward
For Fuse Crypto, the no-action letter lets the company move forward without the heavy obligations that come with securities registration, as long as the token stays within the boundaries it described to regulators.
For the wider industry, it’s another sign that the SEC may be inching toward clearer lines, especially for tokens tied to real-world utility instead of speculation.
Also Read: SEC to Host Roundtable to Debate Crypto Privacy vs. Surveillance
