Wu learned that the U.S. Securities and Exchange Commission (SEC) Division of Corporate Finance issued a No-Action Letter on November 3 regarding Canton Coin. Based on the applicant's factual statements, the SEC determined that Canton Coin constitutes a "digital commodity." The SEC pointed out that Canton Coin's value primarily derives from the programmatic operation of the Canton Network and market supply and demand, rather than investors' expectations of profits generated by the key management activities of others. Furthermore, the SEC stated that the Canton Network does not have a central controlling party that meets the relevant definition. Under the conditions described by the applicant, super validators, validators, and application providers mint Canton Coin according to the established mechanism, even without registration under Section 5 of the Securities Act or Section 12(g) of the Securities Exchange Act. The SEC Division of Corporate Finance will not recommend enforcement action. https://wublock123.com/news/sec-finance-division-deems-canton-coin-crypto-commodity-minting-no-action-71274