Wintermute Trading, a leading market maker in the cryptocurrency sector, has called on the SEC to treat network tokens as infrastructure rather than securities.
Wintermute's Submission to SEC
In its submission to the SEC on September 3, 2025, Wintermute argued that tokens like Bitcoin and Ether "enable a blockchain network to operate" and make up "the vast majority of digital asset market capitalization."
Arguments Against Classifying Tokens as Securities
Wintermute stated that classifying these assets as securities would require compliance with securities laws for every trade, increasing costs for market makers and "stifling innovation, driving blockchain development outside of U.S. markets." The company likened network tokens to commodities, asserting that these tokens are "technically inputs for blockchains, not equity claims on a company."
Impact on the Crypto Market
Wintermute warned that classifying network tokens as securities could significantly raise costs and reduce liquidity for Bitcoin, Ether, and other network tokens, potentially "ultimately pushing trading activities offshore."
Wintermute's submission emphasizes the need for clearer regulatory guidance for network tokens to avoid negative impacts on innovation and trading activity in the cryptocurrency markets.
