The SEC, which has adopted a more lenient stance towards cryptocurrencies under the leadership of Paul Atkins, has made new statements regarding an altcoin.
Accordingly, the US Securities and Exchange Commission (SEC) stated in its latest announcement that it considers Canton Coin (CC) a digital commodity and that it would not recommend imposing sanctions on the token issuance if certain conditions were met.
With this statement, the SEC confirmed that the altcoin CC is not a security, which also influenced its price.
SEC Issues Digital Commodity Assessment for This Altcoin!
The SEC Institutional Finance Division stated in its official announcement that Canton Coin derives its value from automated network transactions and market supply and demand.
The statement noted that the CC token’s value is not based on profit expectations and that there is no central controlling authority.
Will Not Recommend Sanctions!
The SEC stated that it would not recommend sanctioning token issuance by Super Validators, Validators, and application providers if the token meets the conditions presented to it.
However, the SEC also stated that this does not constitute a final and binding legal decision on whether the token is a security. The SEC specifically emphasized that different circumstances may lead to different assessments.
Developments within the Canton Network ecosystem are not limited to regulatory announcements. Asset manager 21Shares previously launched the Canton Coin ETF. In June, Canton Network developer Digital Asset also raised $355 million in a funding round led by a16z crypto to expand the ecosystem.
*This is not investment advice.
