On Wednesday, the native digital currency of the Canton Network experienced a 4% increase following a decision by the US Securities and Exchange Commission’s Division of Corporation Finance to issue a no-action letter classifying the token as a “digital commodity.”
Data from CoinMarketCap indicated that Canton Coin (CC) changed hands at $0.098 as of 10:27 am UTC, although it maintained a loss of approximately 4.2% over the trailing seven days.
Designed with privacy in mind, the Canton Network allows banking entities and financial establishments to tokenize assets, execute trades, and finalize settlements across various platforms.
Within its letter released on Tuesday, SEC personnel concurred with the reasoning that the valuation of CC stems from network utility and token demand, instead of the promotional activities of a central group aiming to provide returns for investors.
Furthermore, the division indicated it would refrain from proposing regulatory enforcement regarding the distribution of CC without formal securities registration, assuming the tokens are generated under the parameters specified by Canton.
Addressing the SEC in a communication on Friday, Digital Asset, the development firm behind Canton, stated that network contributors acquire CC through the maintenance of infrastructure and applications, with the underlying protocol dictating minting limits according to user engagement.
Back in March, the SEC published guidelines separating digital commodities like Ether and Bitcoin from conventional securities, noting that while the assets themselves are not securities, their distribution methods remain governed by securities regulations.
The reaction from the SEC outlines the perspective of its staff members and does not constitute a formal, binding determination regarding the legal classification of CC.
In the past, SEC personnel have granted similar token-centric no-action letters to various cryptographic initiatives, such as the DoubleZero (2Z) project in September 2025 and the Solana-based decentralized physical infrastructure network (DePIN) initiative Fuse in November 2025.
Related: NEAR token sinks 7% as proposal to cut annual token issuance passes
Originally published at https://cointelegraph.com/markets/cantons-cc-rises-sec-no-action-letter-digital-commodity?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound.
