Top worldwide exchanges such as Binance, Coinbase, Poloniex, and Bittrex are teaming up to create a Crypto Rating Council (CRC). The Council’s primary goal is to develop a system to rate digital assets and therefore, ensure investor’s security. The newly formed system may be available very soon, with a rating ranging between 1 to 5.
Some rumors affirm that XRP may have a score of 4, while EOS, XLM, and USDT a 3.75 score. Additionally, it is said that BTC and LTC would both be given the highest score, 5. The score will also rate the assets as “securities”, which will be a huge step to apply SEC’s latest recommendations. On previous occasions, SEC has changed token issuers for violating key informative frames as well as not being completely clear regarding placement rules and risks.
One of the first exchanges to announce the partnership was Coinbase. The American giant published a blog post on Sept. 30th in which they “officially introduced the Crypto Rating Council”. In the post, the Council was described as:
“A member-operated organization formed to assist market participants that trade or support crypto assets to comply with U.S. federal securities laws. Founding members of the Council are Anchorage, Bittrex, Circle, Coinbase, DRW Cumberland, Genesis, Grayscale Investments and Kraken”.
The system will be key in the months to come, as operators will use those ratings to decide on whether to list or not to list a coin on a secondary exchange. Coinbase also affirmed the following:
“The Council’s analytical framework results in a score between 1 and 5. A score of 1 means the Council’s independent analysis suggests the asset has few or no characteristics consistent with traditional regulated security. A score of 5 means the Council’s analysis suggests that an asset has many characteristics strongly consistent with treatment as security”.