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—notably as policymakers grapple with rising applied sciences which are outpacing present frameworks.

SEC Grants Fuse a Uncommon No-Motion Letter

The massive 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 in search of readability round token gross sales.

Fuse requested the SEC’s Division of Company Finance on Nov. 19 to verify it might not advocate 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 might not pursue enforcement “primarily based on the information introduced” if Fuse adheres to the guardrails it outlined.

Moreover, the token can solely be redeemed via third-party venues at market charges, displaying the SEC’s deal with eradicating any investment-like traits.

This marks the second DePIN-related no-action letter in latest 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 aid. For tasks 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 prime 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 putting is Hassett’s historical past with digital belongings. He has publicly engaged with the crypto sector, consulted with coverage teams related to the house, and indicated openness to digital-asset innovation.

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

If appointed, this may be probably the most crypto-friendly Fed chair in U.S. historical past. Whereas the Fed shouldn’t be a crypto regulator, its stance on greenback liquidity, stablecoins, and cost techniques has monumental downstream results. A professional-innovation chair may spur larger openness throughout different businesses—or on the very least, cut 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—notably impersonation schemes, deepfakes, automated theft, and coordinated fraud rings.

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

The invoice’s broader message is evident: manipulation, impersonation, and automatic fraud utilizing AI instruments will face harsher federal penalties. Anticipate 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 in search of 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 massive and too influential for federal regulators to disregard.

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

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

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 via each nook of economic coverage—from stablecoins to world greenback rails to funds innovation.

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