Andreessen Horowitz · SEC · Coinbase · The Block
SEC division views Canton Coin as digital commodity in no-action letter
Compiled by KHAO Editorial — aggregated from 1 source. See llms.txt for citation guidance.
★ Tier-1 Source
The U.S. Securities and Exchange Commission's Division of Corporation Finance said it views Canton Coin (CC) as a digital commodity and will not recommend enforcement action over its programmatic issuance under certain conditions.
Key facts
- In June, Digital Asset raised $355 million in a funding round led by Andreessen Horowitz's a16z crypto fund to expand the Canton ecosystem and accelerate institutional adoption of its blockchain
- The U.S. Securities and Exchange Commission's Division of Corporation Finance said it views Canton Coin (CC) as a digital commodity and will not recommend enforcement action over its programmatic
- In May, 21Shares became the first U.S. ETF issuer to offer direct exposure to CC, the network's native utility token
- Canton Network is a blockchain infrastructure protocol developed by Digital Asset that aims to enable secure, privacy-enabled, and interoperable transactions across institutions and networks
Summary
The U.S. In a no-action letter published Tuesday, the division said Canton Coin derives its value from the programmatic operation of the Canton Network and supply-and-demand dynamics, rather than expectations of profit from the managerial efforts of others. "Based on the facts presented, the Division will not recommend enforcement action to the Commission if, in reliance on your opinion as counsel, Canton Coin is minted programmatically by Super Validators, Validators and application providers, in the manner and under the circumstances described in your letter, without registration under Section 5 of the Securities Act or Section 12(g) of the Exchange Act," Deputy Chief Counsel Jonathan Ingram wrote.
Canton Network is a blockchain infrastructure protocol developed by Digital Asset that aims to enable secure, privacy-enabled, and interoperable transactions across institutions and networks.