SEC clarifies crypto network control rules, cites Canton Coin example

The US Securities and Exchange Commission (SEC) Division of Corporation Finance updated its crypto-asset FAQs, stating that simply voting as a token holder does not make someone a controlling member of a crypto network. The SEC emphasized that the key factor is whether individuals or groups actually control the network, not just participate in governance votes. The updated guidelines, issued on November 2, specify that unaffiliated token holders who vote independently are generally not considered a ‘central party’ for regulatory purposes. However, if voters coordinate their actions outside normal governance processes, SEC staff may view them as a group.