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.
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