Canton’s CC rises 4% as SEC staff view it as ‘digital commodity’

Canton Network’s native cryptocurrency rose 4% on Wednesday after the US Securities and Exchange Commission’s (SEC) Division of Corporation Finance issued a no-action letter stating it views the token as a “digital commodity.”Canton Coin (CC) traded at $0.098 at 10:27 am UTC, but was still down roughly 4.2% over the past week, according to CoinMarketCap.Canton Network is a privacy-focused network that enables banks and financial institutions to tokenize assets, trade and settle transactions across different platforms.In its Tuesday letter, SEC staff accepted the explanation that CC’s value comes from how the network operates and demand for the token, rather than a central team’s efforts to generate profits for holders.The division also said it would not recommend enforcement action over CC’s issuance without securities registration, provided the tokens are created under the conditions described by Canton.In Friday’s letter to the SEC, Canton developer Digital Asset said network participants earn CC by operating infrastructure and applications, with the protocol determining how many tokens they can mint based on their activity.The SEC issued guidance in March distinguishing digital ...