Wintermute urges SEC to deem network tokens non-securities
Market maker Wintermute has formally asked the U.S. SEC to clarify that network tokens are not securities but technical inputs to decentralized protocols. In its feedback, Wintermute argued tokens like Bitcoin (BTC) and Ether (ETH) should be classified as commodities or collectibles, not financial products. Without clear SEC guidance, misclassifying network tokens could hinder market liquidity, raise trading costs, and drive crypto activity offshore. The firm welcomed pending SEC guidance excluding stablecoins, memecoins, and staking services from securities rules, and called for the same clarity on network tokens. Wintermute also urged the SEC to support decentralized finance (DeFi) alongside centralized tokenized securities markets. Clear classification will preserve U.S. market competitiveness, lower compliance costs, and foster innovation in digital assets.
Bullish
By urging the SEC to classify network tokens as non-securities, Wintermute aims to reduce legal uncertainty and preserve market liquidity. In the short term, clear SEC guidance could lower compliance costs and keep trading onshore, supporting stable prices. Over the long term, treating tokens like BTC and ETH as commodities will foster DeFi innovation, expand investor access, and strengthen U.S. digital asset markets. This supportive regulatory stance is likely bullish for network tokens and the broader crypto ecosystem.