The U.S. Securities and Exchange Commission (SEC) issued a no-action letter determining that the $ENERGY token of Fuse Crypto Limited does not require registration as a security. This milestone provides clarity on when a digital asset may be considered utility based on its real-world functionality.
The decision by the SEC rests on the token’s architecture, conceived to reward concrete actions that support the network —installation of distributed energy resources, deployment of EV chargers, or voluntary shifting of consumption— rather than promising benefits derived from Fuse’s business efforts. The token primarily functions as a consumable incentive and a discount on the firm’s goods and services; its redemption is limited and its value is anchored to commercial margins and the average price in secondary markets.
This structure includes explicit mechanisms to discourage speculation and a redemption cap that limits the asset’s open appreciation. The SEC evaluated the tokenomics against the Howey test —the legal test for identifying investment contracts— and concluded that there was no reasonable expectation of profits derived exclusively from the management or efforts of others, the determining element for classification as a security.
Howey test: the legal test that determines whether a transaction is an investment contract and, therefore, a security. In this case, the commission considered that user benefits derive from their own consumption and generation actions, not from Fuse’s corporate performance.
Regulatory and market implications for the DePIN sector
The no-action letter is being interpreted as a relevant precedent for utility-oriented tokens within the emerging DePIN (Decentralized Physical Infrastructure Networks) sector. Projects that demonstrate functional consumption and bounded redemption mechanisms could follow a similar path to avoid classification as securities.
The decision follows a comparable letter granted to DoubleZero for its 2Z token in September 2025, suggesting an emerging pattern in the regulator’s practice. At the institutional level, the move reflects a shift toward a more nuanced engagement by the SEC, associated with internal initiatives identified as Project Crypto and the potential creation of a Crypto Task Force, which seek to offer practical guidance rather than solely apply punitive measures.
In parallel, the absence of a definitive federal legislative framework —the so-called Clarity Act remains in legislative uncertainty— leaves no-action letters as provisional but influential tools for projects seeking operational legality in the U.S.
The no-action letter on the Fuse Energy Token opens an operational path for well-designed utility tokens and positions the drafting of more formal rules within Project Crypto or new administrative decisions that confirm replicable criteria for DePIN projects as the next milestone
