SEC Staff Issues No-Action Letter on Canton Coin Minting

TechFlow reported on Nov. 4 that, according to disclosures by the U.S. Securities and Exchange Commission (SEC) Division of Corporation Finance, the division issued a no-action letter regarding the programmatic minting of Canton Coin. Under the manner and conditions described in the application, staff would not recommend enforcement action to the Commission if super validators, validators, and application providers mint the token without registering it under the relevant securities law provisions.

The division, based on the applicant's representations, considers Canton Coin a digital commodity and specifically noted that its value derives from the network's programmatic operations and supply and demand, and that there is no defined central party within the network. The letter only expresses staff's enforcement position and does not constitute a legal conclusion; changes in facts or conditions may lead to a different conclusion.

Source: TechFlow