The SEC's Division of Corporation Finance regards Canton Coin as a digital commodity and does not recommend enforcement action for qualifying minting.

November 4 - According to the no-action letter issued by the SEC's Division of Corporation Finance on November 3, the division, based on the facts submitted by the applicants, regards Canton Coin (CC) as a digital commodity. The division noted that the value of CC derives from the programmatic operation of the Canton Network and market supply and demand, rather than reliance on expectations of profits from the managerial efforts of others; the network also lacks a "central actor" as defined in the relevant guidance.

If super validators, validators, and application providers mint CC in the manner and under the conditions described in the application letter, based on counsel's opinion, even without registration under Section 5 of the Securities Act or Section 12(g) of the Securities Exchange Act, the division would not recommend that the SEC take enforcement action. The letter reflects only the staff's enforcement position under specific facts and does not constitute a legal conclusion as to whether CC is a security. a16z partner Miles Jennings welcomed this position, believing it may provide regulatory reference for other blockchain network tokens.