Bitcoin Goes Legit: SEC Weighs Regulated STO

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INX, an exchange working to offer the first SEC-approved security token offering in history, is using Brave New Coin’s data as part of its application.

According to a press release provided to BSN, the Brave New Coin Bitcoin Liquid Index and Ethereum Liquid Index will both be used as “reference for applicable conversion rates between US Dollars and named cryptocurrencies, with respect to BTC/USD and ETH/USD exchange rates.”

INX Treads Cautiously in Regulated Waters

Brave New Coin is excited to be a part of the historical process, which might lead to a token offering which gets the blessing from a famously intractable US regulatory body.

INX wants to raise nearly $130 million. Unlike most STOs lately, many of which have taken the form of the Initial Exchange Offering (IEO), the INX crowdfunding effort aims to be open to everyone.

Many of the recent token offerings have required a registration process before the token sale. INX would like to do something more flexible, with a minimum investment of $1000.

INX filed a document with the SEC earlier this year explaining its intentions.

“Our vision is to establish two trading platforms and a security token that provide regulatory clarity to the blockchain asset industry. […] When fully operational, we expect to offer professional traders and institutional investors trading platforms with established practices common in other regulated financial services markets, such as customary trading, clearing, and settlement procedures, regulatory compliance, capital and liquidity reserves and operational transparency.”

As its plans have evolved, INX has created some partnerships, including the one publicized by Brave New Coin.

Brave New Bitcoin

BNC provides data to a number of other companies including NASDAQ. CEO Fran Strajnar said:

“To see high-stake industry developments, like INX’s highly anticipated security token sale, starting to demand quality and independent 3rd party reference rates is a true sign of market maturation. Having conducted due diligence on all ETF and registered security token sales to date, we have identified that a common concern by regulators is poorly constructed benchmark pricing, resulting in a qualitative risk to investors. The INX team and value proposition is highly impressive and we are pleased to be supporting Alan and his team through this process.”

The SEC has yet to give INX, or anyone else, really, the greenlight to do funding via token sales.

To date, the token craze has claimed a number of victims, most famously the social media platform Kik, which was brought down by investigations into its Kin blockchain ecosystem.