The SEC’s Division of Corporation Finance said it views Canton Coin as a “digital commodity” and would not recommend enforcement if Canton validators and application providers mint it programmatically without registering it. The letter states only the staff’s enforcement position, not a legal conclusion, and rests on the facts Canton presented.
Staff cited Canton’s representations that the token’s value comes from network operation and supply and demand, rather than others’ managerial efforts, and that the network has no central party. The letter followed DTCC’s launch of a tokenization service on Canton and DTCC’s private network; Morgan Stanley said it was among the first banks to use it.
