Wintermute requests SEC to confirm that network tokens should not be considered as securities

Trading firms and market maker Wintermute requested the U.S. Securities and Exchange Commission (SEC) to confirm that network tokens should not be classified as securities, Cointelegraph reported. The company said clear guidelines are crucial to avoid misuse of securities laws and ensure the continued growth of the crypto market. Wintermute believes that network tokens are closely related to the functions of decentralized networks or protocols, and are essentially different from financial products or securities. The company mentioned that Bitcoin and Ether are instances of network tokens that should not be considered securities. If the network token is classified as a securities, every transaction in the United States may need to comply with securities laws, which may affect the liquidity of the token, increase transaction costs, and ultimately push activity overseas. The company said online tokens are more like commodities, collectibles and real estate and can be used for investment rather than being considered securities. Wintermute welcomes the SEC's guidance to exclude the security classification of stablecoins, Meme coins and staking activities, and emphasizes the same clarity to the Internet tokens. The company also requests the SEC to ensure that decentralized finance (DeFi) can develop in conjunction with centralized markets to promote innovation, improve investor choices and create a global tokenized securities market.