In a week defined by sweeping regulatory signals, political maneuvering, and fast-moving debates around both crypto and artificial intelligence, U.S. policymakers delivered a series of developments that could reshape how digital assets interact with financial institutions and federal oversight. From the SEC’s rare approval of a Solana-based token to the possibility of the most crypto-aligned Federal Reserve chair in history, the regulatory climate around emerging technologies appears to be entering a new phase—one marked by cautious experimentation, ideological realignment, and a growing recognition that innovation is advancing faster than the frameworks designed to govern it.
Below is a comprehensive exploration of the week’s most consequential events, unpacking their implications and the broader currents they signal across Washington, financial markets, and the rapidly evolving crypto ecosystem.
SEC Grants Fuse a Rare No-Action Letter A Milestone for DePIN Utility Tokens
The most eye-catching headline of the week came from the U.S. Securities and Exchange Commission, which quietly issued a rare and highly sought-after no-action letter to Fuse, a decentralized physical infrastructure network (DePIN) project built on the Solana blockchain.
Why Fuse Asked for Relief
On November 19, Fuse approached the SEC’s Division of Corporation Finance with an unusual request: it sought confirmation that the Commission would not pursue enforcement action against the offer and sale of its FUSE token, provided the project operated under a specific set of constraints and disclosures.
Unlike thousands of other blockchain projects that launch tokens with speculative investment upside in mind, Fuse emphasized that:
- FUSE is strictly a network participation token,
- It is earned—not sold—as a reward for contributing infrastructure,
- It grants access to protocol operations, not profit expectations,
- It is redeemable only through third-party venues at market rates, and
- Its distribution mechanisms are tightly controlled to prevent speculation.
The SEC’s Response
In a letter signed by Jonathan Ingram, deputy chief counsel, the SEC stated that it would not recommend enforcement “based on the facts presented,” as long as Fuse adhered to the guardrails outlined in its submission.
This is notable for several reasons:
- No-action letters are extraordinarily rare in crypto—and rarer still for actively distributed tokens.
- The SEC’s acceptance indicates growing openness to genuine utility tokens that play a role in real-world decentralized systems.
- It represents the second such approval for a DePIN project in recent months, hinting at a subtle but unmistakable shift within the Commission.
- It offers a blueprint—though not binding precedent—for how future DePIN and IoT-integrated networks might seek regulatory clarity.
A Data Point With Big Implications
While this does not reverse the SEC’s broader campaign against unregistered token sales, it does provide a real example of what regulators consider sufficiently non-security-like. For builders in the DePIN category—where tokens often reward work, not investment—the Fuse decision serves as the clearest sign yet that utility-driven economic models have a path forward in the United States.
Trump’s Leading Fed Pick Has Deep Crypto Ties: Kevin Hassett Steps Into the Spotlight
Possibly the most politically consequential development this week came not from regulators but from the political sphere. According to several administration insiders, Kevin Hassett—economist, former chair of the Council of Economic Advisers, and longtime Trump confidant—has emerged as the top candidate to replace Jerome Powell as Chair of the Federal Reserve.
Why Crypto Is Watching Closely
Hassett’s background reveals unusually deep ties to the digital-asset ecosystem:
- He has publicly advocated lighter, innovation-friendly approaches to blockchain regulation.
- He has consulted with groups active in crypto policy formation.
- He has spoken positively about digital assets as potential economic growth drivers.
For a position as central to U.S. and global monetary policy as the Federal Reserve chairmanship, this is unprecedented.
A Crypto-Friendly Fed Chair?
If selected, Hassett would instantly become the most crypto-aligned central banker in U.S. history.
This matters because while the Fed does not directly regulate crypto exchanges or token issuers, it exerts enormous influence over:
- Dollar liquidity, which affects stablecoin issuance and adoption,
- The future of FedNow and digital payment infrastructure,
- Banking access rules for crypto companies,
- The long-term debate over a U.S. central bank digital currency (CBDC),
- The global competitive posture of the dollar against digital assets.
According to Trump advisers, Hassett is not only favored for the role but has indicated he would accept the nomination.
The Broader Policy Impact
A Hassett-led Fed could:
- Encourage more open bank-crypto relationships,
- Reduce institutional caution around stablecoins,
- Support innovation-first regulatory philosophy,
- Trigger corresponding shifts at agencies including the SEC, CFTC, OCC, and Treasury.
In short: his appointment could create a top-down cultural shift in how Washington treats digital assets.
Congress Introduces the AI Fraud Deterrence Act A Bipartisan Strike Against Deepfake Crime
While crypto headlines dominated much of the week, lawmakers also moved decisively on another frontier technology: artificial intelligence.
Representatives Ted Lieu (D-CA) and Neal Dunn (R-FL) introduced the AI Fraud Deterrence Act, a bipartisan bill aimed squarely at the rising wave of AI-driven scam activity.
Why This Bill Matters
The legislation proposes enhanced penalties for:
- AI-assisted impersonation,
- Deepfake-generated scams,
- Automated phishing rings,
- Mass-coordinated AI fraud operations,
- AI tools used for market manipulation—including in crypto markets.
This is a direct response to the explosion of AI-powered fraud that has recently plagued:
- Crypto exchanges,
- On-chain financial platforms,
- Retail investors,
- Politicians, celebrities, and public figures,
- Payment processors and digital banks.
Crypto Is a Core Focus
The bill explicitly references AI-enabled schemes targeting:
- Digital wallets,
- Crypto payment apps,
- Identity verification systems,
- Decentralized platforms vulnerable to bots.
Given the speed with which AI tech evolves, lawmakers expect this framework to be updated regularly.
This marks one of the clearest signals yet that AI and crypto policy are beginning to converge—especially in areas related to scams, deepfakes, and automated financial crime.
CFTC Seeks to Rein in Prediction Markets Through New Innovation Council
The Commodity Futures Trading Commission also made progress on a long-brewing issue: how to regulate prediction markets.
Commissioner Caroline Pham announced a new effort to reshape oversight of these markets through the CFTC’s CEO Innovation Council, a body she is revamping to address emerging financial technologies.
Prediction Markets Under New Scrutiny
Prediction markets—platforms where users trade contracts based on the likelihood of future events—have grown dramatically in influence.
Platforms like Polymarket now see millions in weekly volume on topics including:
- Elections,
- Macroeconomic indicators,
- Sports outcomes,
- Crypto asset events,
- Regulatory decisions.
With this growth has come increased regulatory pressure, as the lines between:
- financial derivatives,
- information markets,
- political forecasting, and
- decentralized speculation
continue to blur.
Pham’s Call for Public Participation
Through a press release on November 25, Pham:
- Invited nominations for the new innovation council,
- Encouraged industry stakeholders to propose focus areas,
- Highlighted prediction markets as an early priority.
This signals that the CFTC is preparing a more structured, explicit framework governing the space—something the industry has sought for years.
The Big Picture A Regulatory Climate in Motion
Taken together, this week’s developments reveal a regulatory environment undergoing rapid recalibration:
The SEC is cautiously opening the door to utility-driven token models.
The Fuse no-action letter demonstrates that tightly configured, infrastructure-focused tokens may have a viable regulatory path—especially within the DePIN ecosystem.
A crypto-friendly Fed chair would represent a seismic shift.
If Kevin Hassett is appointed, it could reshape U.S. monetary policy toward greater openness and reduce systemic friction for stablecoins and blockchain payments.
Congress is signaling a new era of AI-focused financial crime enforcement.
The AI Fraud Deterrence Act appears to be the first of many bills that will target deepfake-enabled fraud across digital markets.
The CFTC is moving to catch up with prediction markets.
As these platforms expand across politics, sports, and crypto, they are becoming too large for regulators to treat as niche experiments.
Conclusion
This week marks one of the most dynamic regulatory moments for crypto and emerging technologies in 2025. From token classification to AI fraud, from monetary policy to prediction markets, Washington is slowly—sometimes hesitantly—adapting to a new technological reality.
But the most consequential shift may come from the top of the Federal Reserve itself. A crypto-aligned Fed chair could influence nearly every corner of U.S. financial policy, ushering in an era where digital assets are treated not as speculative threats, but as components of the future financial system.
If that happens, this week may be remembered as the turning point.
