SEC Division of Corporation Finance has determined that Cant
On November 3, 2026, the SEC Division of Corporation Finance issued a no-action letter regarding Canton Network's native token Canton Coin (CC), stating that, based on the facts presented by the applicant, it is a "digital commodity"; subject to certain conditions, even if minting activities are not registered under Section 5 of the Securities Act or Section 12(g) of the Securities Exchange Act, the division would not recommend enforcement action. The three sources differ in their wording of the letter's name and date.
Event Timeline
- [11-03 21:21] The SEC Division of Corporation Finance considered Canton Coin a digital commodity (PANews)
- [11-03 21:23] The SEC Division of Corporation Finance considered Canton Coin a digital commodity (Odaily Planet Daily)
- [11-03 23:06] The U.S. SEC Division of Corporation Finance determined that Canton Coin is a digital commodity and issued a no-action letter regarding its minting activities (Wu Blockchain)
Background and Impact
On November 3, 2026, the U.S. Securities and Exchange Commission (SEC) Division of Corporation Finance issued a No-Action Letter regarding Canton Network's native token Canton Coin (CC), stating that, based on the factual representations provided by the applicant, Canton Coin is a "Digital Commodity." The division stated that, subject to certain conditions, it would not recommend enforcement action against the programmatic issuance of CC. Canton Network subsequently posted on the X platform citing the contents of the letter. PANews, Odaily Planet Daily, and Wu Blockchain all published reports on the evening of November 3; PANews and Odaily Planet Daily published at 21:21 and 21:23 respectively, with their summaries labeled "news of November 4," while Wu Blockchain's report time was 23:06.
The bases for the SEC Division of Corporation Finance's judgment included: CC is closely related to the programmatic operation of Canton Network, and its value comes from network operation and supply-demand relationships, rather than expectations of profits from the core managerial efforts of others; the network has no centralized controlling party (Wu Blockchain's wording was "there is no central controlling party meeting the relevant definition"). Regarding the minting process, Wu Blockchain mentioned that, under the conditions described by the applicant, super validators, validators, and application providers mint Canton Coin according to the established mechanism, and even if they do not register under Section 5 of the Securities Act or Section 12(g) of the Securities Exchange Act, the SEC Division of Corporation Finance would not recommend enforcement action.
The three sources are not fully consistent in their detailed wording: PANews and Odaily Planet Daily called it a "no-objection letter," while Wu Blockchain called it a "No-Action Letter"; on the date, Wu Blockchain explicitly said November 3, while PANews's summary was written as "news of November 4," although its actual publication time was November 3 at 21:21. None of the three sources explained the full text of the letter's conditions, nor did they mention whether it binds other SEC divisions or commissioners.
In nature, this is a division-level statement by the SEC Division of Corporation Finance, based on the facts stated by the applicant and directed at specific minting activities of a specific token, with conditions attached; the available materials do not show that it applies to tokens other than CC, nor do they show that it covers other activities of Canton Network. Market attention is focused on two aspects: whether more similar letters will appear, and the specific boundaries of the "certain conditions" in the letter. Neither point is disclosed in the current materials. Readers tracking such documents can view token information updates in the news and market sections corresponding to entry points such as Huobi HTX registration APP download, Zhima Gate.io registration APP download, Bitget registration APP download, Binance registration APP download, and OKX registration APP download.
Frequently Asked Questions
### Does this letter bind tokens other than Canton Coin?
The materials show that the letter was made based on the factual representations provided by the applicant and is limited to the premise of satisfying certain conditions; its content only concerns the minting activities of Canton Coin, and it does not mention whether it applies to other tokens or other networks.
### What specifically do the "certain conditions" mentioned in the letter include?
The three sources only mention that super validators, validators, and application providers mint Canton Coin according to the established mechanism, and cite the registration requirements of Section 5 of the Securities Act and Section 12(g) of the Securities Exchange Act; they do not disclose the full text of the conditions.
### What nodes can be followed going forward?
Attention can be paid to whether the SEC Division of Corporation Finance issues more similar letters, and to further explanations by Canton Network regarding the contents of the letter. The current materials do not provide a specific timetable.