Weekly Crypto Regulation Roundup: SEC Clears Solana’s Fuse Token and Trump Eyes Crypto-Pleasant Fed Chair

It’s been one other consequential week in Washington and past, with U.S. regulators sending combined however significant indicators throughout crypto, AI, and monetary coverage. From the SEC greenlighting a Solana-based token to the prospect of a crypto-friendly Federal Reserve chair, the regulatory local weather is shifting quick—significantly as policymakers grapple with rising applied sciences which are outpacing present frameworks.

SEC Grants Fuse a Uncommon No-Motion Letter

The large headline got here from the U.S. Securities and Alternate Fee, which issued a no-action letter to Solana-based DePIN challenge Fuse—an uncommon step for a blockchain challenge on the lookout for readability round token gross sales.

Fuse requested the SEC’s Division of Company Finance on Nov. 19 to verify it could not suggest enforcement motion over the provide and sale of its FUSE token. The challenge emphasised that FUSE isn’t pitched as a speculative asset: it’s strictly a community participation token, distributed as a reward to customers who keep the protocol’s decentralized infrastructure. The SEC agreed.

In a letter signed by deputy chief counsel Jonathan Ingram, the regulator acknowledged it could not pursue enforcement “primarily based on the info offered” if Fuse adheres to the guardrails it outlined.

Moreover, the token can solely be redeemed by means of third-party venues at market charges, displaying the SEC’s give attention to eradicating any investment-like traits.

This marks the second DePIN-related no-action letter in current months. Whereas not precedent-setting, the choice is a helpful datapoint: when tokens are tightly scoped to utility and distribution is managed, the SEC seems extra open to reduction. For initiatives constructing real-world infrastructure on-chain, it’s one of many clearest regulatory indicators we’ve seen in months.

Trump’s High Fed Decide Has Deep Crypto Ties

Crypto markets could quickly have a sympathetic voice on the very high of U.S. financial coverage. Kevin Hassett—director of the White Home Nationwide Financial Council and longtime Trump ally—has emerged because the main candidate to exchange Jerome Powell as Federal Reserve chair.

What’s hanging is Hassett’s historical past with digital property. He has publicly engaged with the crypto sector, consulted with coverage teams linked to the area, and indicated openness to digital-asset innovation.

Trump’s advisers describe him as somebody whom the president trusts deeply on interest-rate coverage—significantly on the query of slicing extra aggressively than Powell. Hassett has additionally reportedly indicated he would settle for the function if chosen.

If appointed, this may be probably the most crypto-friendly Fed chair in U.S. historical past. Whereas the Fed just isn’t a crypto regulator, its stance on greenback liquidity, stablecoins, and fee programs has monumental downstream results. A professional-innovation chair may spur larger openness throughout different businesses—or on the very least, scale back friction.

Bipartisan Invoice Targets Rising AI-Powered Fraud

AI-generated scams are surging, and Congress is taking discover. This week, lawmakers launched the AI Fraud Deterrence Act, a bipartisan proposal from Rep. Ted Lieu (D-CA) and Rep. Neal Dunn (R-FL). The invoice seeks to impose more durable penalties on crimes dedicated utilizing synthetic intelligence—significantly impersonation schemes, deepfakes, automated theft, and coordinated fraud rings.

The laws can also be explicitly tied to monetary markets and crypto, the place AI-powered fraud is rising at an alarming charge. Excessive-profile instances involving deepfake video scams, impersonation bots, and automatic phishing rings have intensified strain on lawmakers to intervene.

The invoice’s broader message is obvious: manipulation, impersonation, and automatic fraud utilizing AI instruments will face harsher federal penalties. Count on this framework to evolve shortly, given the sharp rise in AI-driven schemes throughout exchanges and Web3 platforms.

CFTC Pushes for New Prediction Markets Framework

Lastly, on the CFTC, Commissioner Caroline Pham is making strikes to deliver prediction markets into sharper regulatory focus.

Pham introduced that the company is looking for nominations for its new CEO Innovation Council, a physique designed to advise on rising markets and frontier monetary applied sciences. One of many council’s early priorities would be the quickly evolving prediction markets sector—an area that has grown too giant and too influential for federal regulators to disregard.

By means of a Nov. 25 press launch, Pham invited public nominations and inspired business stakeholders to suggest subjects the council ought to prioritize. With prediction markets more and more touching politics, finance, sports activities, and crypto, the CFTC is clearly making ready a extra structured method.

This comes as platforms like Polymarket proceed to develop and entice mainstream consideration, forcing regulators to rethink how forecasting markets match inside present derivatives regulation.

The Massive Image

From the SEC’s cautious openness to utility-focused tokens, to Congress tightening the screws on AI-based crime, to the CFTC’s try to modernize its oversight, the regulatory ecosystem is shifting in actual time.

However probably the most consequential growth could also be Trump’s obvious curiosity in appointing a Fed chair aligned with crypto innovation. That appointment would reverberate by means of each nook of monetary coverage—from stablecoins to world greenback rails to funds innovation.

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