In a no-action letter dated November 3, the SEC stated that Canton Coin is a digital commodity, allowing the network’s validators and application providers to issue it without registering it as a security under the Securities Act. The token rose as much as 6% on Wednesday before retreating to around $0.98 on Thursday morning. That same day, Canton Strategic Holdings announced that its shares had been traded in tokenized form on Canton Network through Fairmint, DRW Cumberland, Tradecraft and Flowdesk, which provided liquidity. The market remains restricted to approved investors, currently covers only one company and has disclosed no trading volumes. The SEC exemption is temporary, while tokenization is advancing on Wall Street and in Europe under separate regulatory frameworks.
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