SEC division designates Canton Coin as digital commodity in no-action letter
The SEC's Division of Corporation Finance stated in a no-action letter that it considers Canton Coin a digital commodity and will not recommend enforcement action against its programmatic issuance under certain conditions.
The U.S. Securities and Exchange Commission's Division of Corporation Finance will not recommend enforcement action concerning the programmatic issuance or minting of Canton Coin without securities registration under certain conditions, according to reporting by The Block and commentator Scott Melker. In a no-action letter, the division recognized the Canton Network native token as a digital commodity under its crypto asset regulatory framework.[1][2][3][4]
The division explained its position by pointing to the token's role in operating the Canton Network rather than an expectation of profits driven by the managerial efforts of others, The Block reported. SEC staff also highlighted the network's lack of a central party in making the determination.[2]
Key facts
- The SEC's Division of Corporation Finance classified Canton Coin as a digital commodity in a no-action letter under its crypto asset framework.
- SEC staff stated they will not recommend enforcement action against Canton Coin's programmatic issuance under specified conditions.
- The enforcement relief applies to the minting of the token without securities registration.
- The division cited Canton Coin's connection to the operation of the Canton Network rather than profit expectations from others' managerial efforts.
- The division noted the lack of a central party on the Canton Network.
Sources 路 4 sources
- CB
Crypto Banter@crypto_banterPost on X 路
馃毃SEC CLASSIFIES CANTON COIN AS DIGITAL COMMODITY! The SEC鈥檚 Division of Corporation Finance has classified canton-network:native as a digital commodity under its crypto asset framework. The classification applies under the staff鈥檚 current interpretive framework.
Open source - TB
The Block@TheBlockCoPost on X 路
THE BLOCK: The SEC's Division of Corporation Finance said it considers Canton Coin canton-network:native a digital commodity and will not recommend enforcement action against its programmatic issuance under certain conditions, according to a no-action letter. The division cited the token's connection to the operation of the Canton Network, rather than expectations of profit from others' managerial efforts, and the network's lack of a central party.
Open source - TW
The Wolf Of All Streets@scottmelkerPost on X 路
馃嚭馃嚫 SEC STAFF SAYS CANTON COIN $CC IS A "DIGITAL COMMODITY" AND WON'T RECOMMEND ENFORCEMENT OVER ITS MINTING WITHOUT SECURITIES REGISTRATION https://t.co/RjkRWyBt3G
Open source - TB
The BlockArticle 路
SEC division views Canton Coin as digital commodity in no-action letter SEC's Division of Corporation Finance won't recommend enforcement over Canton Coin's programmatic issuance, calling CC a digital commodity.
Open source