INX, a firm regulated by the Securities and Exchange Commission (SEC), restricts its platform to listing only five cryptocurrencies, classified as non-securities.

In light of ongoing legal disputes with US-based exchanges like Coinbase and Binance.US, an executive from a domestic digital asset firm has highlighted the potential legal repercussions of these enforcement actions for the industry.

According to Itai Avneri, the Chief Operating Officer of INX, a blockchain trading firm, the period of trading cryptocurrencies as non-securities is nearing its conclusion. Avneri asserts that the proliferation of coins available for trading on crypto exchanges largely contributes to the prevailing legal quandaries.

The days of treating cryptocurrencies as if they aren’t securities are gone,” stated Avneri in a Cointelegraph interview on June 19. He commented that INX had foreseen this development five years ago, as outlined in their prospectus. “It’s as if we had a clairvoyant crystal ball,” he mused.

CoinGecko data reveals that Coinbase currently lists as many as 241 cryptocurrencies on its platform, offering over 530 trading pairs. Despite reaching a settlement regarding an asset freeze with US regulators, its competitor Binance.US continues to provide 154 cryptocurrencies for trading.

Standing in stark contrast to Coinbase or Binance.US, INX has only listed five cryptocurrencies since its inception in 2017. According to Avneri, the listed coins encompass Bitcoin (BTC), Ether (ETH), USD Coin (USDC), Avalanche (AVA), and Litecoin (LTC).

Avneri emphasized INX’s selective approach to listing cryptocurrencies on its platform and referred to their offerings as “highly curated.” He underlined that INX is not purely a crypto company, with its core focus on digitized or tokenized securities.

Despite no definitive classification of Ether as a security, Avneri reiterated that Bitcoin is undoubtedly not a security. He also mentioned INX’s commitment to maintaining Ether’s listing, even if it is deemed a security in the future.

Avneri suggested that INX views the need for thousands of cryptocurrencies to transition into securities as an opportunity. He expressed his belief that the path to achieving this, along with their appropriate registration with the SEC, will become progressively clearer. “I think this signifies a unique turning point for the industry, perhaps even a point of no return,” he reflected.

Avneri’s statements echo the sentiments expressed by Gary Gensler, chair of the U.S. Securities and Exchange Commission. In September 2022, Gensler asserted that a majority of cryptocurrencies function as securities. Before assuming his position as SEC chair, Gensler contended that more than 70% of the crypto market, including Bitcoin, Ether, Litecoin, Bitcoin Cash, and others, did not fall under securities.

INX proudly identifies as one of the pioneering companies to conduct a security token offering that has received approval from the U.S. SEC.