The US Securities and Exchange Commission (SEC) has granted no-action relief confirming that Canton Coin, the native token of the Canton Network is a digital commodity, not a security.
The SEC’s decision also covers the minting of Canton Coin by network participants – including Super Validators, Validators, and application providers – confirming that such minting can occur without registration under the Securities Act or the Exchange Act.
The no-action relief gives institutions and developers greater regulatory certainty to participate in the Canton Network and earn rewards for supporting the network.
Central to the SEC assessment were two defining characteristics of the network:
* the network operates without a central party controlling participation or reward distribution, and
* it was already a functional blockchain network when Canton Coin launched
The decision reaffirms the approach taken to establish the Canton Network. Its underlying technology was developed and demonstrated through real-world financial applications before leading financial institutions came together to launch the network. Additionally, Canton Coin was introduced without an initial coin offering or pre-mine sale, with tokens initially earned exclusively through contributions to operating network infrastructure and applications.
The Canton Network – a public, permissionless blockchain purpose-built for institutional finance – uniquely combining privacy, compliance, and scalability. plays a significant role in the institutional growth of on-chain finance.
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