Quick Breakdown:
- Wintermute asks the SEC to confirm that network tokens like Bitcoin and Ether are not securities.
- Misclassifying tokens could hinder liquidity, raise trading costs, and push activity offshore.
- The firm urges support for both DeFi and centralized tokenized markets to foster U.S. crypto innovation.
Trading firm and market maker Wintermute has formally urged the U.S. Securities and Exchange Commission (SEC) to clarify that network tokens such as Bitcoin and Ether should not be classified as securities. The appeal came in response to the SEC’s request for industry feedback on digital asset regulation.
Call for Clear Guidance
Wintermute argued that “network tokens,” which are essential to the operation of decentralized networks, differ fundamentally from financial products. The firm stressed that these tokens are technical inputs, not investment contracts, and therefore fall outside the scope of securities laws.
Citing Bitcoin (BTC) and Ethereum (ETH) as prime examples, Wintermute warned that classifying them as securities could lead to severe consequences for the U.S. crypto market. Such a move, it said, would trigger burdensome compliance requirements for every token transaction, reduce liquidity, increase costs, and drive blockchain innovation offshore.
Today, Wintermute submitted feedback to the SEC’s Crypto Task Force on tokenized securities
We set out recommendations in three areas we see as critical for liquidity providers to support the adoption of tokenized securities ↓
— Wintermute (@wintermute_t) September 3, 2025
“Misclassification risks stifling innovation and pushing development outside the United States,”
the company wrote, adding that clarity would help maintain U.S. competitiveness in the global crypto economy.
Distinction from Securities
The firm emphasized that network tokens should be treated more like commodities, collectibles, or real estate l all of which can be purchased for investment purposes without being labelled as securities. Wintermute said this distinction is crucial even if tokens are later traded for profit or used in fundraising rounds.
In addition to network tokens, Wintermute called on the SEC to adopt policies that allow decentralized finance (DeFi) to grow alongside centralized markets for tokenized securities. Supporting both avenues, the company argued, would expand investor options, foster innovation, and strengthen the U.S. position in global markets. Beyond its policy push, Wintermute continues to expand its own market footprint. The firm recently secured a Bitcoin-backed credit facility from Cantor Fitzgerald, signaling its role in the investment bank’s newly launched $2 billion Bitcoin financing business.
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