Canton’s CC rises 4% as SEC staff view it as ‘digital commodity’
Canton Network's native cryptocurrency rose 4% on Wednesday after the US Securities and Exchange Commission's Division of Corporation Finance issued a no-action letter stating it views the token as a "digital commodity."
Canton Coin (CC) traded at $0.098 at 10:27 am UTC on Wednesday, though it remained down approximately 4.2% over the past week according to CoinMarketCap data. Canton Network operates as a privacy-focused platform enabling banks and financial institutions to tokenize assets and settle transactions across different platforms.
SEC's position
In a Tuesday letter, SEC staff accepted that CC's value derives from network operations and token demand rather than a central team's efforts to generate profits for holders. The division stated it would not recommend enforcement action over CC's issuance without securities registration, provided tokens are created under the conditions described by Canton.
The SEC issued guidance in March distinguishing digital commodities, such as Bitcoin and Ether, from securities. It said these tokens are not themselves securities, although the way they are offered and sold can still be subject to securities laws.
Developer response
In Friday's letter to the SEC, Canton developer Digital Asset explained that network participants earn CC by operating infrastructure and applications, with the protocol determining token minting amounts based on activity levels. The SEC's response reflects staff position only and is not a binding ruling on CC's legal status.
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