A group of major cryptocurrency exchange firms have joined forces to create a project that independently evaluates digital assets and rates them according to their likelihood of being categorized as securities. Called the Crypto Rating Council (CRC), the group hopes to help the teams behind several of these projects, stay on the right side of the law.
For quite a while now, many crypto projects have been consistently targeted by the United States Securities and Exchange Commission, in disagreements over whether or not they should be categorized as securities. In some cases, these drag on for so long that the projects experience significant damage. Now, the CRC hopes to significantly reduce these occurrences, but also show the SEC that the industry will abide by laid down regulations. The CRC includes Coinbase, Kraken, Bittrex, Circle Internet Financial Ltd. and a few others.
The rating is assigned on a scale of 1-5 with 1 showing an asset extremely unlikely to be a security and 5 showing an asset which will most likely be categorized as a security by the SEC. The CRC notes that the ratings are done independently and do not take into account any external suggestions. Regardless, issuers are free to register complaints, if they feel their tokens have been wrongfully assigned.
Bitcoin was marked 1, with ETH bagging a 2 and XRP coming in at 4.
Image Credits: Pixabay
