Market maker Wintermute has reached out to the U.S. Securities and Exchange Commission (SEC) urging it to provide clear guidelines regarding the regulation of native tokens, particularly those like Bitcoin and Ethereum. This issue was raised by the company in response to the SEC’s request for comments on rules for tokenized securities, highlighting key aspects for participants in the crypto market.
This is reported by Finway
Wintermute’s Demands to the SEC Regarding the Cryptocurrency Market
Wintermute emphasized the need for specific recommendations to ensure transparency and stable development in the industry. In particular, the company proposed that the SEC:
- Provide clear and understandable rules for dealers, including the right for licensed counterparties to self-custody tokenized securities;
- Support not only centralized but also decentralized markets, without an automatic registration requirement for liquidity providers;
- Define the legal status of network (native) tokens, which form the basis of most of the cryptocurrency market capitalization.
Wintermute stressed that assets such as Bitcoin and Ethereum are primarily “technical resources” and differ from most other crypto assets and securities. According to the company, classifying them as securities could lead to a significant decrease in liquidity, increased operational costs, and an exodus of participants from U.S. markets.
“Such a misclassification risks stifling innovation and driving blockchain development and trading activity outside U.S. markets,” the company stated.
The Need for Transparency in Crypto Asset Regulation
Wintermute also supported the exclusion of staking, stablecoins, and meme coins from the category of securities. The company believes that a similar level of transparency should be implemented for network tokens. It emphasized that even if such assets are used for speculative operations, this does not justify their classification as securities.
Wintermute is confident that clear guidance from the SEC regarding the status of native tokens will promote further development and innovation in the field of cryptocurrencies and tokenized assets in the U.S.