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Crypto Regulation

SEC Staff No-Action Letter Calls Canton’s CC a ‘Digital Commodity’

SEC staff issued a no-action letter treating Canton Network’s CC token as a ‘digital commodity’ when earned by running infrastructure and applications, sending the token up 4%. The letter is not a binding ruling on CC’s legal status, leaving the classification open to challenge. The relief covers CC earned through operating nodes and apps on the Canton Network.

Original source

AI take

The significance is less in the label than in the mechanism: relief tied to tokens earned by operating infrastructure gives a compliance template for networks that pay participants in their own asset, a framing other proof-of-stake and RWA chains have lacked. Because the letter is staff-level and non-binding, it clarifies SEC posture without settling CC's legal status, so its weight depends on how broadly staff applies the reasoning. Worth watching is whether comparable earned-token models receive similar treatment, and whether the classification faces a formal challenge that tests how durable this position proves.

Generated by AI for reference only.

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