Canton Network receives no-action relief from SEC
05 November 2026 US
Image: Laingzaifa/stock.adobe.com
The Canton Network has been granted no-action relief by the staff of the US Securities and Exchange Commission (SEC), clarifying that the platform’s native token, Canton Coin, is a digital commodity, not a security.
The relief also spans the minting of Canton Coin by network participants — including validators, super validators, and application providers — confirming that it can occur without registration under either Section 5 of the Securities Act or Section 12(g) of the Exchange Act.
According to Canton, the SEC’s letter gives institutions and developers “greater regulatory certainty to participate” in the network.
The no-action relief is the first of its kind from the SEC since the March 2026 interpretive release on how federal securities laws apply to crypto assets and the August 2026 proposal, Regulation Crypto Assets.
The SEC’s letter highlights that Canton Coin is “intrinsically linked to and derives its value from the programmatic operation of the Canton Network”, rather than the managerial efforts of others, and the platform lacks a “central party”.
Speaking on the relief, Yuval Rooz, CEO of Digital Asset, creators of the Canton Network, says: “This decision provides important clarity around how a public blockchain can incentivise participation while operating within established regulatory frameworks.
“It also creates new opportunities for institutions and developers to engage with Canton as more of the world's financial markets move onchain.”
The relief also spans the minting of Canton Coin by network participants — including validators, super validators, and application providers — confirming that it can occur without registration under either Section 5 of the Securities Act or Section 12(g) of the Exchange Act.
According to Canton, the SEC’s letter gives institutions and developers “greater regulatory certainty to participate” in the network.
The no-action relief is the first of its kind from the SEC since the March 2026 interpretive release on how federal securities laws apply to crypto assets and the August 2026 proposal, Regulation Crypto Assets.
The SEC’s letter highlights that Canton Coin is “intrinsically linked to and derives its value from the programmatic operation of the Canton Network”, rather than the managerial efforts of others, and the platform lacks a “central party”.
Speaking on the relief, Yuval Rooz, CEO of Digital Asset, creators of the Canton Network, says: “This decision provides important clarity around how a public blockchain can incentivise participation while operating within established regulatory frameworks.
“It also creates new opportunities for institutions and developers to engage with Canton as more of the world's financial markets move onchain.”
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