US SEC’s Corporate Finance Division regards Canton Coin as a digital commodity and does not recommend enforcement action against eligible minting.
57 minutes ago
According to a no-action letter issued by the U.S. Securities and Exchange Commission (SEC) Division of Corporation Finance on November 3, the division, based on facts submitted by the applicant, views Canton Coin (CC) as a digital commodity. The division noted that CC derives its value from the programmed operation of the Canton Network and market supply and demand, rather than the expectation of profit dependent on others’ management activities; the network also does not have a "central entity" as defined in relevant guidance. If super validators, validators, and application providers mint CC in accordance with the manner and conditions outlined in the application letter and based on legal counsel’s advice, the division will not recommend the SEC take enforcement action, even if CC is not registered under Section 5 of the Securities Act or Section 12(g) of the Securities Exchange Act. The letter only reflects the staff’s enforcement position under specific facts and does not constitute a legal conclusion on whether CC is a security. Miles Jennings, a partner at a16z, welcomed this stance, stating it could provide a regulatory reference for tokens of other blockchain networks.
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