The U.S. Securities and Exchange Commission (SEC) has provided regulatory clarity to Fuse Crypto, a Solana-based decentralized physical infrastructure network (dePIN) project. The SEC issued a no-action letter stating that Fuse’s native token is not considered a security, primarily due to its utility-driven use case rather than speculative investment characteristics. This is a significant step in a landscape where many projects are facing scrutiny regarding whether their tokens meet the criteria for an investment contract under the Howey Test. The decision offers crucial legal reassurance and sets a precedent for other dePIN projects pursuing regulatory clarity. The SEC explained that Fuse’s token holds its value through actual use within the ecosystem, such as accessing services and powering infrastructure, not through anticipated profits from third-party actions. This distinction aligns with the agency’s view on functional crypto projects operating within legal frameworks while fostering innovation in decentralization.