Wintermute Declares: SEC Must Stop Treating Network Tokens as Securities
Wintermute just dropped a bombshell on regulators—network tokens aren't securities, and treating them as such stifles innovation.
The Push for Clarity
Market makers argue that blanket securities classification ignores how these tokens actually function within decentralized ecosystems. They're utilities, not investment contracts—and the SEC's outdated framework misses the point entirely.
Finance's Classic Move
Meanwhile, traditional finance circles keep trying to force square pegs into round holes—because if there's one thing Wall Street loves, it's slapping old labels on new assets to maintain control.
Bottom line: The regulatory tug-of-war continues, but the crypto world isn't waiting for permission to build the future.
Wintermute Warns SEC: Mislabeling Tokens Could Kill Innovation
Treating network tokens like Bitcoin and ethereum as securities, Wintermute warned, would misapply existing laws and risk stifling innovation.
“Such misclassification risks stifling innovation and driving blockchain development and trading activity outside of US markets,” Wintermute wrote in its letter.
It added that even if network tokens are later traded for profit or used in fundraising, they still do not meet the legal definition of a security.
Wintermute likened network tokens to assets such as commodities, collectibles, and real estate, goods that may be purchased for speculative purposes but are not inherently securities.
The firm also welcomed SEC guidance that excluded stablecoins, memecoins, and staking services from the securities label, and called for similar treatment of network tokens.
The company further pressed the SEC to create a regulatory environment that allows decentralized finance (DeFi) to grow alongside centralized platforms.
3. We also ask for clarification on the jurisdiction of the SEC
We request that the SEC clarify that network tokens are not securities, which make up most of the market for crypto assets, as it has done for other types of crypto assets
In addition, we seek clarification to…
“Clear guidance across these areas will keep US markets competitive, encourage continued dialogue with regulators, and create optimal conditions for adoption and innovation to thrive,” Wintermute stated.
Wintermute’s comments follow its recent expansion push in the US, including a $112 million acquisition of QCEX, a CFTC-licensed exchange.
The firm appears to be laying the groundwork for deeper engagement in regulated markets, while pushing for frameworks that accommodate decentralized models.
With the SEC continuing to scrutinize crypto markets, Wintermute’s request underscores the industry’s ongoing demand for clarity, before more projects and capital flee to friendlier jurisdictions.
Trump Administration Pushes Pro-Crypto Agenda
The TRUMP administration advanced its pro-crypto agenda with a series of policy and regulatory moves.
President Trump signed an executive order urging regulators to remove barriers that prevent 401(k) plans from including alternative assets such as cryptocurrencies.
If implemented, the reforms could allow millions of Americans to allocate retirement funds to bitcoin and other digital assets through regulated channels.
Trump also nominated economist Stephen Miran, a digital asset advocate, to the Federal Reserve Board of Governors, signaling continuity in his administration’s pro-crypto stance.
In a separate executive order, Trump moved to end “debanking” practices that target lawful crypto firms.
The Blockchain Association praised the measures as a “historic shift” that WOULD expand consumer choice, empower wealth-building, and reduce operational barriers for blockchain businesses.
