Read this article on bsc.news The US Securities and Exchange Commission's Division of Corporation Finance has issued a no-action letter for Canton Coin ($CC), the native token of the Canton N
The US Securities and Exchange Commission's Division of Corporation Finance has issued a no-action letter for Canton Coin ($CC), the native token of the Canton Network (@CantonNetwork). According to The Block, staff will not recommend enforcement action over the token's programmatic issuance if certain conditions are met.
According to The Block, the division said Canton Coin derives its value from the programmatic operation of the Canton Network and from supply-and-demand dynamics, rather than from expectations of profit tied to the managerial efforts of others. The link between the token and network activity, rather than promises from a management team, is the central point of the letter.
The relief covers the minting of CC by network participants. Cryptopolitan reported that staff will not recommend action over issuance by Super Validators, Validators and application providers, provided the representations and conditions in the request remain satisfied.
Digital Asset Holdings, the developer behind the Canton protocol, requested the relief in an October 30 letter, according to Genfinity. DeFi Prime, citing counsel's representations, reported that Canton Coin had no initial coin offering, pre-mine, pre-launch sale or allocation, and that accumulating the token does not give a holder voting power.
The letter is not a definitive legal ruling. The Block noted that it reflects the division's enforcement position based on the specific facts and representations Canton submitted, and does not express a legal conclusion on the issues presented, including whether Canton Coin is a security. Reporting by TechFlow also noted that a change in facts or conditions may lead to a different conclusion.
Even so, the letter gives market participants a Canton-specific example of how SEC staff approach network tokens, as noted by Spendnode. It may serve as a regulatory reference point for other blockchain networks with similar token designs, though each case would turn on its own facts.
a16z partner Miles Jennings welcomed the outcome on X, as quoted by Cryptopolitan. Genfinity noted that data pages showed Canton Coin up roughly four percent after the news.
The Block: SEC division views Canton Coin as digital commodity in no-action letter
Genfinity: Canton Coin no-action letter analysis
DeFi Prime: SEC staff gives Canton Coin minting no-action relief
