Wintermute: Traders should be allowed to conduct on-chain settlements directly; DeFi proprietary trading should not require registration.

Odaily Planet Daily reports that cryptocurrency market maker Windemute posted on its X platform that it has followed up with the U.S. Securities and Exchange Commission (SEC) Cryptocurrency Working Group, highlighting two key points:

1. Regulated dealers should be authorized to develop their own clearing and settlement procedures for tokenized securities without triggering the rules applicable to broker-dealers who provide clearing services to clients. Dealers should be allowed to settle directly with counterparties on-chain and adopt customized risk management standards.

2. Proprietary trading and liquidity provision on DeFi protocols should not trigger dealer registration. If a company trades only for its own account and does not interact with customers, the activity falls under the long-standing "trader exemption" rule.