SEC Defines Conditions for Issuing Canton Coin

The U.S. Securities and Exchange Commission (SEC) Division of Corporation Finance classified Canton Coin (CC) as a digital commodity asset. In a letter dated November 3, 2026, the regulator's staff stated that they would not recommend enforcement actions for the issuance of tokens without registration, provided certain conditions are met.

The decision followed a request from the legal representatives of Digital Asset dated October 30. The company developed the Canton Network—a blockchain infrastructure designed for financial institutions dealing with tokenized assets, payments, and settlements.

In the response signed by Deputy Chief Counsel Jonathan Ingram, SEC staff explained that their position is based on the information provided about the network's structure and the token issuance mechanism.

Why the SEC Classified Canton Coin as Digital Commodities

In reviewing the request, the regulator considered that the value of Canton Coin is tied to the network's operation according to protocol rules, as well as market supply and demand. According to the information provided, token holders should not expect profits solely from the managerial efforts of a particular company or group of individuals.

Another factor was the governance structure of the Canton Network. The request indicated that there is no single controlling party within the network, as understood by the current SEC classification.

Based on this information, the division stated that it would not recommend enforcement actions for the programmatic issuance of CC by supervalidators, validators, and application providers within the described mechanism. The position pertains to the requirements of Section 5 of the Securities Act of 1933 and Section 12(g) of the Securities Exchange Act of 1934.

However, the letter does not establish the final legal status of all operations with Canton Coin. The SEC emphasized that the conclusions are based solely on the presented circumstances and may be revised if the network's operating conditions change.

The decision came a day after the SEC updated its guidance on crypto assets. In a document dated November 2, the regulator's staff clarified that participation in a fund or organization responsible for blockchain development does not, by itself, indicate centralized control. The assessment considers the actual authority of participants to manage network access, validators, and protocol rules.

Canton Expands Use in Financial Infrastructure

The regulatory clarification followed the launch of several institutional projects based on the Canton Network.

On October 28, the American infrastructure organization DTCC launched a securities tokenization service for assets held in its depository division DTC. The system is integrated with the Canton Network and the private Besu network, allowing the creation of digital representations of traditional financial instruments.

Access agreements to the service were signed by 20 financial organizations, including JPMorgan, Bank of America, Fidelity Investments, Morgan Stanley, and State Street.

In May, the Swiss bank AMINA, regulated by FINMA, announced the launch of custody and trading services for Canton Coin. In the same month, Bitwise launched the Canton ETP exchange-traded product on Deutsche Börse Xetra under the ticker BWCC, backed by CC tokens.

In June, network developer Digital Asset raised $355 million in a funding round led by a16z crypto. After an additional $10 million raised in July, the total round amount increased to $365 million.

The SEC letter clarifies the regulatory approach to the specific mechanism of Canton Coin issuance but does not replace legal requirements for other token operations. For market participants, the document's significance lies primarily in describing the conditions under which the regulator's staff does not intend to recommend sanctions.