Trading firm Wintermute has urged the US Securities and Exchange Commission (SEC) to clarify whether network tokens should be classified as securities. In a formal response, Wintermute argues that network tokens, essential technical components of decentralized networks, fundamentally differ from financial products and should not be subject to securities laws. The company provides examples such as Bitcoin and Ethereum, stating they are not securities. wintermute believes if SEC classifies network tokens as securities, all trades would require regulatory compliance and could negatively affect liquidity, cost for traders, and potentially drive activities offshore. They argue that this misclassification risks stifling innovation and driving trading activity outside US markets. Wintermute also highlights the need for clarity on stablecoins, memecoins and staking activities to ensure fair competition in the market. The company suggests a clear regulatory framework across these areas would promote innovation, encourage dialogue with regulators, and create optimal conditions for growth.