SEC corporate finance staff says Canton Coin is a digital commodity

The U.S. Securities and Exchange Commission’s Division of Corporation Finance has issued a no-action letter stating that it views Canton Coin (CC), the native token of Canton Network, as a digital commodity. The staff said it would not recommend enforcement action over the programmatic issuance of CC, provided certain conditions are met. In its explanation, the division said CC is closely tied to the programmatic operation of Canton Network and that its value comes from network activity and supply-and-demand dynamics, rather than from an expectation of profits derived from the essential managerial efforts of others. The staff also said the network does not have a centralized controlling party. Canton Network later cited the contents of the no-action letter.