The trade company and market manufacturer Wintermute asked the United States Securities and Exchange Commission (SEC) to confirm that network tokens should not be classified as security.
To formally comment on the agency’s request for comment, the company Says The clear guidance on the security status of the tokens is required to avoid incorrectly applying security laws and ensuring the continued growth of crypto markets.
Wintermute said “network tokens,” which are “intrinsically connected to the functioning of a decentralized network or protocol,” are required technical inputs for blockchain networks. As such, the company said, they are fundamentally different from financial or security products.
The company mentioned Bitcoin (Btc) and ether (Eth) as examples of network tokens that should not be classified as security.
Wintermute compares to network tokens on goods
If the network tokens are classified as security, each trading of such digital assets in the US may require compliance with regulation in security laws. This may affect the liquidity of the tokens, raise costs for merchants and eventually push coastal activities.
“Such risks to misconceptions continue to change and drive blockchain development and trading activity outside US markets,” Wintermute wrote.
The company said network tokens do not meet the standards for security even when it was eventually exchanged for income or used in funding.
Wintermute said network tokens work more like goods, collectivity and real estate. It can buy everything for investment purposes without being treated as security.
In addition to its recommendations, the company also The SEC’s guidance is accepted Stablecoins, memecoins and staking activities are excluded from security classification. It emphasized that the same level of clarity should be expanded to network tokens.
“Clear guidance in these areas will keep us in competitive markets, encourage continued communication with regulators, and create optimal conditions for adoption and change to develop,” the company said.
Cointelegraph reached the wintermute for more information, but did not receive a response before published.
Related: US SEC’s Crypto Task Force is driven in volume-proof digital assets
Wintermute requested in the SEC to ensure Defi growth
In addition to clarifying the issue of network tokens, the company also asked the SEC to ensure that Decentralized Finance (DEFI) may develop alongside centralized markets for tokenized securities.
Wintermute said the agency should empower both ways to compete. The company said it would promote change, improve investor options and create a global market for tokenized securities.
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