Wintermute has submitted a letter to the SEC's Crypto Assets Task Force advocating for traders to manage their own on-chain settlement processes without requiring registration. The firm argues that regulated traders should not be penalized for bypassing traditional clearinghouses when settling on-chain for their own accounts, provided they meet their obligations promptly. This could enhance efficiency by reducing intermediary layers. Additionally, Wintermute contends that proprietary trading on DeFi platforms should not necessitate dealer registration. They assert that activities such as liquidity provision on DeFi, without client interaction or market-making duties, should classify participants as "traders" rather than "dealers." This stance aligns with the legal precedent of "trader exemption" and follows the 2024 court decision repealing the "dealer rule." Wintermute stresses the importance of balancing innovation with regulation to prevent excessive regulatory burdens on DeFi.