WirepolicyDextape brief
Canton Coin Is a ‘Digital Commodity,’ SEC Staff Say in Letter Covering Network Rewards
A Corporation Finance staff letter applies the SEC's March token taxonomy to Canton's reward token, resting on what Digital Asset told the agency about how the network works.
Dextape brief
Staff at the SEC's Division of Corporation Finance have indicated they would not urge enforcement action if Canton Coin is minted as network rewards without securities registration, so long as validators and application providers follow the method Digital Asset laid out. The guidance came in a no-action letter that Deputy Chief Counsel Jonathan A. Ingram dated Nov. 3, replying to a request filed October 30 by Digital Asset's lawyer, Jeffrey T. Dinwoodie. Staff placed the token within a category termed digital commodity under the agency's March 2026 interpretation, leaning on Digital Asset's assurances that value flows from network operation and market forces instead of managerial efforts, and that no central party exists. The relief is staff-level rather than a formal Commission decision, and it leaves secondary-market trading unaddressed.
Why it matters: It shows how SEC staff are applying their March interpretation to tokens distributed as network rewards, a point that bears on how other networks structure token issuance.
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