SEC gives Canton crypto regulatory relief – Why CC faces a $0.10 test

On the 3rd of November, the SEC Division of Corporation Finance reported that it views Canton [CC] as a digital commodity. Through a no-action letter, the division said that Canton's value derives from the Canton Network’s operations and market dynamics. Simply put, the SEC clarified that Canton doesn't get value from profits generated by others' efforts. Furthermore, the division added that the coin lacks a central party. For that reason, the division noted that, “ The division will not recommend enforcement action to the commission” The decision reflects the division's position based on facts presented by Canton. However, it does mean the SEC has made conclusions on whether the coin is a security. The SEC decision was welcomed by market players.

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