Security Token Provider INX Cannot Relate to Coinbase’s SEC Woes

INX was the first company to conduct a tokenized initial public offering under SEC approval in 2021. Now, it’s helping others do the same

article-image

Blockworks exclusive art by axel rangel

share

key takeaways

  • After its successful regulated ICO, INX now works with other companies on compliance solutions
  • Coinbase’s claim that the SEC refuses to create new rules is unfounded, INX’s deputy CEO told Blockworks

As Coinbase continues its disagreement with the SEC over the proper classification of crypto assets, security token provider INX says it has been playing by the rules for years. 

INX, an exchange that facilitates regulated securities tokens listings, was founded in 2017, during the height of the initial coin offering (ICO) boom. As the new form of crowdfunding drew increased regulatory scrutiny, the company decided to adhere to stringent regulatory standards, said Itai Avneri, deputy CEO and chief operating officer.

“We made a strategic decision back then that we were going to do it in the right way,” Avneri said. “While others ran away from regulations, we went to the front door and basically came to the SEC and said that we want to do a regulated ICO.” 

INX was the first company to conduct a tokenized initial public offering under SEC approval in 2021. The platform raised $85 million from more than 7,000 retail investors. After the token offering closed, INX listed the INX security token for the secondary market on its alternative trading system, the INX Securities platform. 

Coinbase’s recent petition to the SEC to provide greater clarity around digital asset classification highlights the same issues INX has been addressing with regulators for years, Avneri said. 

The SEC alleged nine tokens (AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX and KROM) are securities and, as such, Coinbase cannot trade them without a broker-dealer license, which INX holds, Avneri said.

“[In the petition, Coinbase] said that the SEC has been unwilling to write new rules,” Avneri said. “I’m saying they’re wrong because the SEC is already working together with us.” 

The SEC’s latest complaint highlights the need for companies and projects to think critically before launching tokens, Renata Szkoda, chief financial officer of INX, said.

“It’s such a critical moment for these projects and companies to consider whether they would be considered a security or not, if that token is issued,” Szkoda said.

“Unfortunately, a lot of tokens got created and I don’t know if that consideration ever got its full deserved attention.”  

INX now works with other companies to help issue digital securities and raise capital by providing licensing, technology, marketing, compliance services and more. Last month, INX partnered with Trucpal, a digital financial and tax accounting software for the Chinese freight market, to launch a token offering. 

“I do want to stop and acknowledge how revolutionary this type of investing is for a regular investor,” Szkoda said. “It really makes the investing process much more open to general public.” 


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
  • Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.png

Research

Fluid's hybrid money market & DEX protocol has grown rapidly since launch in December of 2024.

article-image

Should higher-fidelity graphics be the goal for crypto games — which result in much higher costs and risk?

article-image

From Mel B to Neil deGrasse Tyson, BTC has seen its share of strange celebrity sightings

article-image

Circle’s roadshow will be the real test for the stablecoin issuer

article-image

PitchBook’s Robert Le said crypto projects focused on institutional use cases are the focus

article-image

The decentralized AI firm designed ODS to be owned by the community in an effort to promote more decentralized AI

article-image

The non-profit’s launch and big-name hires aim to grow Solana’s footprint in Washington