The United States Securities and Exchange Commission will not press charges against Fuse Energy. The SEC’s Division of Corporation Finance announced on Monday that it will not recommend enforcement action to the commission regarding its native token sale
The SEC issued Fuse crypto with a no-action letter since its native token dubbed ENERGY does not satisfy its securities laws. Precisely, the SEC agreed that the ENERGY token does not fail the Howey test, thus not a security
The attorneys representing Fuse Crypto noted that investors of Fuse through ENERGY do not expect any profit from the company. Instead, the attorneys argued that ENERGY investors derive their value from the consumer utility in the Fuse network, and not the success of the network.
“The Energy Network is built to help scale our grids… As our energy systems strain, The Energy Network and $ENERGY introduce a fair, intelligent framework that recognises and rewards those who support the grid when it’s needed most,” Fuse Energy said.
The ruling by the SEC is a welcome addition to the altcoin market, especially amid the stalling of the Clarity Act by the lawmakers. The SEC has already issued several no-action letters to the crypto industry year-to-date.
With Fuse Energy running on the Solana (SOL) network, the ruling will heavily impact its utility coins. Furthermore, the U.S. lawmakers are likely to enact the Clarity Act next year ahead of the mid-term elections, according to Senator Tim Scott.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
South Korea’s Supreme Court has delivered a decisive ruling that removes lingering legal uncertainty around…
The next 24 hours will be very important for the crypto market. As all eyes…
Story Highlights The live price of Optimism is . OP could attempt a recovery toward…
Grayscale Investments has filed for new trusts in Delaware to pave the way for BNB…
President Donald Trump told The New York Times he will not pardon jailed FTX founder…
Truebit Protocol, a blockchain project focused on verified computing, has suffered a major security breach…
