Wintermute urges SEC to exclude network tokens from securities rules
Wintermute said clear SEC guidance would keep US markets competitive, foster regulator dialogue and support innovation in digital assets.
Trading company and market maker Wintermute asked the United States Securities and Exchange Commission (SEC) to confirm that network tokens should not be classified as securities.
In formal feedback to the agency’s request for comment, the company said clear guidance on the security status of tokens is necessary to avoid the misapplication of securities laws and ensure the continued growth of crypto markets.
Wintermute said that “network tokens,” which are “intrinsically connected to the functioning of a decentralized network or protocol,” are necessary technical inputs for blockchain networks. Because of this, the company said, they fundamentally differ from financial products or securities.