Itai Avneri, the Chief Operating Officer at blockchain trading firm INX, has stated that the days of trading cryptocurrencies as non-securities are over due to the recent legal implications facing US-based exchanges. According to Avneri, a large number of coins offered for trading on crypto exchanges is among the core reasons for legal issues. He believes that INX’s decision to list only five cryptocurrencies since its launch in 2017, including Bitcoin, Ether, USD Coin, Avalanche, and Litecoin, shows that it is essential to carefully choose which cryptocurrencies to trade on its platform.
Avneri also suggested that thousands of cryptocurrencies now need to find a way to be converted into securities and listed on platforms like INX. As the industry enters this unique turning point, INX sees opportunities in listing such cryptocurrencies if they are properly registered with the U.S. Securities and Exchange Commission (SEC).
Avneri stated that while Bitcoin is “definitely not a security,” there is no clear definition of Ether as such. He added that INX would find a way to list ETH on its platform in case it is deemed a security one day.
These remarks by Avneri echo comments made by SEC Chair Gary Gensler, who argued in September 2022 that most cryptocurrencies are securities. In contrast, prior to becoming SEC chair, Gensler also argued that more than 70% of crypto markets are not securities, including Bitcoin, Ether, Litecoin, Bitcoin Cash, and others.
Overall, the article suggests that INX is positioning itself as one of the first companies to conduct a security token offering approved by the SEC. As more cryptocurrencies face regulatory scrutiny, INX’s cautious approach may be an advantage in navigating the changing landscape of cryptocurrency trading.