SEC ruling lifts Canton Coin 6% as a16z sees pathway out of securities laws
The no-action position covers three types of network participant under counsel’s described model and gives no binding legal conclusion. Read the full story on CryptoSlateUnderstand the crypto stories that matter and what to watch next. Get The Catalyst in your inbox
Canton Coin rose more than 6% after US securities regulators recognized the blockchain's native token as a digital commodity.
The token traded at $0.09892, according to CryptoSlate's data, as investors assessed a Nov. 3 decision that removes a significant regulatory obstacle for the institutional blockchain network.
The Securities and Exchange Commission's (SEC) Division of Corporation Finance said it would not recommend enforcement action against certain network participants that earn newly minted Canton Coin (CC) for operating infrastructure and applications without registering those activities under federal securities laws.
The decision drew praise from Miles Jennings, head of policy and general counsel at Andreessen Horowitz's a16z Frontier, who argued that the ruling establishes a broader regulatory pathway for blockchain projects.
“Incredible,” Jennings wrote on X, pointing to the SEC's March token classification framework and subsequent guidance.
He added that the developments had created a clear pathway out of securities laws, arguing that network tokens should be treated as digital commodities.
His assessment carries particular commercial significance for Andreessen Horowitz. The venture capital firm's a16z crypto fund led a $355 million financing round for Canton developer Digital Asset in June, alongside financial institutions including BNP Paribas, HSBC and Citadel Securities.
The SEC's decision applies its March 2026 crypto asset framework to Canton, a blockchain designed to support transactions between financial institutions while preserving commercial privacy.
Under the arrangement submitted by Digital Asset's lawyers, three groups can earn newly created tokens: Super Validators that operate synchronization infrastructure, Validators that process and support transactions, and application providers that build services connected to the network.
Participants receive rewards based on measurable contributions through automated minting rounds. Canton Coin also serves as payment for transaction fees, with tokens used for those fees subsequently burned.