Contents and sources 1 sections
Key points
- The fact-specific response gives a no-action position on the described minting arrangements, not a blanket legal determination.
Response retains its conditions
In a November 3 response, the SEC Division of Corporation Finance said it views Canton Coin as a digital commodity based on representations in the incoming letter. Canton Network shared the response at 20:58 UTC on November 3.[1][2]
The division highlighted two representations: Canton Coin derives its value from the network’s programmatic operation and supply and demand, rather than expectations of profits from others’ essential managerial efforts; and Canton has no “central party” as defined in the relevant interpretation.[1]
For programmatic minting by Super Validators, Validators and application providers in the manner and circumstances described in the letter, the division would not recommend SEC enforcement action for proceeding without registration under Section 5 of the Securities Act or Section 12(g) of the Exchange Act. Different facts or conditions could change that position. The no-action response addresses enforcement only and does not express a legal conclusion.[1]
Sources & further reading
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For information and education, not investment advice. Crypto assets are volatile. Verify independently.
