Canton Community’s native cryptocurrency rose 4% on Wednesday after the US Securities and Change Fee’s (SEC) Division of Company 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, however was nonetheless down roughly 4.2% over the previous week, based on CoinMarketCap.
Canton Community is a privacy-focused community that permits banks and monetary establishments to tokenize belongings, commerce and settle transactions throughout totally different platforms.
In its Tuesday letter, SEC workers accepted the reason that CC’s worth comes from how the community operates and demand for the token, slightly than a central staff’s efforts to generate earnings for holders.
The division additionally stated it might not suggest enforcement motion over CC’s issuance with out securities registration, offered the tokens are created below the situations described by Canton.
In Friday’s letter to the SEC, Canton developer Digital Asset said community individuals earn CC by working infrastructure and purposes, with the protocol figuring out what number of tokens they will mint primarily based on their exercise.
The SEC issued steering in March distinguishing digital commodities, akin to Bitcoin and Ether, from securities. It stated these tokens usually are not themselves securities, though the way in which they’re provided and bought can nonetheless be topic to securities legal guidelines.
The SEC’s response displays its workers’s place and isn’t a binding ruling on CC’s authorized standing.
SEC workers beforehand issued token-related no-action letters to crypto initiatives, together with DoubleZero (2Z) in September 2025 and Solana-native decentralized bodily infrastructure community (DePIN) project Fuse in November 2025.
Associated: NEAR token sinks 7% as proposal to cut annual token issuance passes
