The SEC's Division of Corporation Finance issued a no-action letter to Digital Asset regarding Canton Coin, classifying the network token as a digital commodity. SEC staff stated they will not recommend enforcement action over its programmatic minting without securities registration, citing supply-and-demand value dynamics and the lack of a central controlling party. Following the decision, Canton Coin rose up to 6% to around $0.098. Industry figures including a16z's Miles Jennings welcomed the ruling as establishing a clearer pathway out of federal securities laws for decentralized network tokens.
SEC staff no-action determination
- ▪The SEC's Division of Corporation Finance issued a no-action letter to Digital Asset stating it will not recommend enforcement action regarding the programmatic issuance of Canton Coin without securities registration
- ▪SEC Deputy Chief Counsel Jonathan Ingram noted the Canton Coin no-action letter represents a staff enforcement position based on specific facts, not a binding legal conclusion or legal ruling on Canton Coin's security status
- ▪The SEC staff classified Canton Coin as a digital commodity, citing Canton Network's lack of a central controlling party to drive value and automated network operation and supply-and-demand dynamics rather than third-party managerial profit expectations
Digital Asset's arguments to the SEC
- ▪Digital Asset requested no-action relief for Canton Coin in a letter to the SEC
- ▪Digital Asset argued in its SEC submission that Canton Network's burn-and-mint model ties token value to actual network usage rather than speculative investment expectations
- ▪Digital Asset highlighted in its October 30, 2026 letter to the SEC that Canton Coin had no pre-mine, initial coin offering, or pre-launch token sale prior to entering circulation
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