Market maker Wintermute has made an official appeal to the U.S. Securities and Exchange Commission (SEC), urging the regulator to provide clear explanations and definitions regarding native tokens, particularly Bitcoin and Ethereum. The company emphasized that such steps are necessary for the effective implementation of tokenized securities and the further development of the crypto market.
This is reported by Business • Media
Wintermute’s Position on Crypto Asset Regulation
In its official response to the SEC’s inquiry, Wintermute highlighted three key issues that require regulation. First, the company recommended establishing clear rules for dealers, allowing them not only to trade tokenized securities but also to store them independently, provided they have the appropriate license. Second, Wintermute stressed the importance of supporting both centralized and decentralized markets, noting that providing liquidity should not automatically require mandatory registration for such providers.
Third, the company called on the SEC to provide a clear definition of network or native tokens that constitute a significant portion of market capitalization. Wintermute pointed out that these assets are a “technical resource” and are fundamentally different from traditional securities. Bitcoin and Ethereum were cited as examples.
Consequences of Incorrect Token Classification
The company believes that classifying native tokens as securities could lead to a contraction of liquidity, increased costs, and the exit of counterparties from the market.
“Such a misclassification risks stifling innovation and hindering the development of blockchain and trading activity outside U.S. markets,” the company stated.
Wintermute also positively assessed the SEC’s decision to exclude staking, stablecoins, and meme coins from the list of securities. In the company’s view, the same transparent approach should be applied to native tokens, regardless of whether they are used for speculative purposes.
Wintermute is confident that clear clarifications from the SEC regarding the status of network tokens will contribute to the industry’s development and the formation of a stable crypto market in the U.S.