New Members Join the Crypto Ratings Council
The Crypto Ratings Council (CRC), a notable consortium of significant cryptocurrency players in the U.S., is flexing its digital muscles as it welcomes new members. Recently, trading platform eToro, crypto exchange OKCoin, and startup Radar Relay have jumped on board, bringing fresh perspectives to the table. With this new influx of talent, the CRC now boasts eleven members dedicated to demystifying the regulatory landscape for cryptocurrencies in the U.S.
The CRC’s Mission: Navigating the Regulatory Waters
Launched on September 30, 2019, the CRC was established with a mission: to figure out which digital assets fall under the watchful eye of the U.S. Securities and Exchange Commission (SEC). The council’s approach? An online ratings system where cryptocurrencies are scored between 1.00 and 5.00. A score of 5.00 screams ‘SEC jurisdiction’ while a 1.00 is a joyous shout-out to non-security tokens that can dance freely in the wild.
Meet the League of Eleven
The CRC’s roster reads like a who’s who of crypto giants. Alongside Coinbase and the newcomers, you’ll find Kraken, Circle, Bittrex, Genesis Global Trading, Grayscale Investments, Anchor Labs, and DRW Holdings’ Cumberland unit, proving that the industry’s heavyweights are in this together.
New Additions to the Ratings Family
In conjunction with adding new members, the CRC has broadened its online ratings to include five new digital assets. On this crowded stage, you’ll find popular players like Dash (DASH) and Ethereum Classic (ETC). Other notable mentions include Cosmos (ATOM) and lesser-known altcoins like Horizen (ZEN) and Livepeer (LPT). With each addition, it brings us closer to understanding which tokens might need to call their local regulatory authority for guidance.
What the Scores Really Mean
Currently, Dash and friends are riding high with a score of 1.00, meaning they are deemed not securities. However, Ethereum Classic and its big brother, Ether (ETH), find themselves hovering at a 2.00 – indeed, they have more to worry about regarding SEC scrutiny. Who knew that trading virtual coins was a high-stakes game of regulatory poker?
XRP: The Enigmatic Token
Then there’s XRP – the token that triggers a divide in the crypto community! Standing at a daunting 4.00 on the CRC scale, XRP’s status remains a conundrum, leaving many to speculate whether it’s a security or a commodity. The recent comments from CFTC’s chairman only add fuel to this regulatory fire. Ripple, the company behind XRP, is currently in a legal swordfight over allegations it flouted securities laws, and is desperately waving its flag of dismissal.
The Road Ahead for the CRC
The CRC’s journey continues as it tries to adapt to the fast-evolving landscape of cryptocurrency regulations. With backing from industry giants and a clear framework for asset ratings, it aims to ensure clarity for projects exploring the depths of the regulatory pond. The question on everyone’s mind now: will today’s ratings stand tomorrow’s audits?