In brief
The SEC has granted no-action relief stating it will not recommend enforcement if Fuse offers and sells its ENERGY token without registration, provided the company follows the structure in its November 19 submission.
The agency has emphasized that its position depends on Fuse maintaining the facts and conditions described in its filing.
Fuse said the decision follows months of engagement with the SEC in a win for U.S. crypto clarity.
Fuse Crypto Limited, an energy-technology company that operates distributed-energy programs across the U.S. and Europe, received a key regulatory boost on Monday after the SEC said it would not pursue enforcement over the firm’s planned rewards token.
In a response to Fuse’s November 19 no-action request, the SEC’s Division of Corporation Finance said it would not object if Fuse offers and sells its ENERGY token without registration, provided the company adheres to the structure described in its submission.
"We are very pleased to receive confirmation that the SEC staff will effectively not consider the Fuse reward token program a securities offering," Stephen Wink, global co-chair of Latham & Watkins’ Fintech Industry Group, the law firm representing Fuse, told Decrypt. "This is another positive step toward providing greater clarity to innovators in the digital asset space."
While the SEC stressed that its view is contingent on Fuse maintaining the token structure described in its submission, the decision offers one of the clearest examples yet of the regulator distinguishing a loyalty-style digital token from an investment product.
“This landmark is the result of months of productive engagement with the SEC, and Fuse is proud to play a role in pushing forward regulatory clarity for crypto in the U.S.," the company said in a statement on X. “The momentum is building.”
Fuse tokenomics
London-based Fuse had argued the Solana-based token’s design limits speculation, noting that redemption values are capped by its profit margins and tied to the average market price when consumers use them.
Fuse’s system awards tokens to households that install or operate distributed energy resources, such as rooftop solar, batteries, and EV chargers.
The firm also argued that the token functions like a rebate for energy-efficiency participation rather than an investment tied to the company’s performance.
SEC staff ultimately agreed that the token’s value will not depend on the overall success of Fuse or the Fuse Network, a core element of the Howey test used to determine whether an asset is a security.
The decision drew support from Bill Hughes, a lawyer at Consensys, who said the SEC's cited factors made the outcome clear.
“There is not a lawyer in crypto that would have thought this token was a security,” he wrote on X, calling the matter an “easy case.”
