Cryptocurrency market maker Wintermute has actively engaged with the U.S. Securities and Exchange Commission (SEC)’s task force, outlining key regulatory concerns surrounding digital asset trading. The company proposes two pivotal points for reform. Firstly, Wintermute advocates for regulated traders to establish their own tokenized securities clearing and settlement procedures, avoiding the need for broker-dealer registration under existing rules. This approach would enable direct on-chain settlements between traders and counterparties while allowing for customized risk management practices. Secondly, Wintermute argues that proprietary trading within DeFi protocols should not necessitate trader registration. As such activities are solely undertaken by the company, this aligns with the long-standing ‘trader exemption’ provision for these market participants.