Posted 2 years ago | by Ben Armstrong
eToro and OKCoin join Coinbase-Backed Crypto Ratings Council (CRC)
Cointelegraph announced in a press release last week that the Coinbase-backed Crypto Ratings Council (CRC), a group of major United States’ cryptocurrency firms, has expanded to include new members like trading platform eToro, crypto exchange OKCoin, and Radar, which is the startup behind the decentralized exchange called Radar Relay.
The CRC was launched on Septemper 30, 2019, and the firm falls under the jurisdiction of the U.S. Securities and Exchange Commission (SEC). It aims to which digital assets should be considered securities.
There are now 11 members in the CRC, including Goldman Sachs-backed crypto finance firm Circle. Other CRC members include Kraken exchange, Bittrex, Genesis Global Trading, Grayscale Investments, Anchor Labs, DRW Holdings' Cumberland unit, and Coinbase itself.
The CRC is Busy
The CRC has been publishing online ratings for digital assets on a scale from 1.00 to 5.00, according how how much a digital asset should be considered a securities. The highest score on its scale means that a token is likely to be considered as a security, and should not be sold by unregulated firms.
The group recently announced five new digital assets would joining its public online ratings. The CRC securities Framework Asset Ratings in the press release added popular cryptocurrencies like Dash (DASH), Ethereum Classic (ETC), Cosmos (ATOM), as well as lesser known altcoins like Horizen (ZEN) and Livepeer (LPT).
As per the ratings, Dash is one of six cryptocurrencies that are ranked 1.00 as of press time and considered by the CRC to not represent a security alongside Bitcoin (BTC), Litecoin (LTC), privacy-oriented altcoin Monero (XMR), Dai (DAI) and Horizen. Ethereum Classic is ranked 2.00 together with its predecessor Ether (ETH), which means that these cryptocurrencies are more likely to be securities.
Coinbase said in the press release that the CRC’s analysis is, “its own and is not endorsed by developer teams, regulators, or any other third party.”
Classifications are Still a Little Fuzzy
XRP is ranked 4.00 on the CRC’s ratings, and it is likely considered to be a security as it has one of the highest ranks among all analyzed digital assets, although XRP is an example of a token that requires further analysis. As the SEC (or CFTC) will ultimately be responsible for creating US regulations, the CRC's ratings system is a rough-guide, at best.
Heath Tarbert , commodity Futures Trading Commission (CFTC) chairman, recently said that it remains unclear whether XRP falls under the CFTC or the SEC’s jurisdiction. The regulatory status of XRP is unclear, especially after the token’s issuer Ripple was made the target of a class-action lawsuit alleging that it violated the securities law by selling its tokens.