The U.S. Securities and Exchange Commission (SEC) announced that Canton Coin is classified as a digital commodity under the agency's framework. The SEC's Division of Corporation Finance stated, "We classified Canton Coin as a digital commodity based on the intended use of the Canton Network and the absence of a dominant central controlling entity." Accordingly, it explained that if super validators, validators, and application providers issue tokens according to the submitted conditions, it will not recommend enforcement actions for violating registration obligations under securities law. This is a response to a request submitted by Digital Asset Holdings, the developer of the Canton Protocol, on the 30th of last month, and represents a staff-level enforcement position, not an official legal judgment or interpretation of law by the SEC.
