- Bitcoin alongside Litecoin, Monero, and Dai score one indicating unlikeness of being securities.
- The Crypto Rating Council hopes that the SEC views this as a good step forward.
Cryptocurrency exchanges Coinbase, Kraken, Circle which operates Poloniex and Bittrex have come up with a system that lets them rate cryptocurrencies that are likely to be flagged as securities. A press release regarding the system sent by Coinbase to The Block said that the system is tailor-made to assist exchange platforms to know which digital assets to list those to stay away from.
The system is run via a Crypto Rating Council and requires that all the collaborating exchanges post online ratings for cryptos using a scale of one to five. The highest value of the scale flags the crypto token as a security. While the system does not allow input from the token issuers, it allows them to “dispute a score their token received.”
A section of Coinbase’s press release explains that:
“Any asset rating published by the Council is the result of a factual analysis performed by outside legal experts in conjunction with technical experts at member firms.”
In already existing scores, Bitcoin scored one. Ripple (XRP) had a score of four while EOS, Stellar and Tezos made a score of 3.75. Other cryptocurrencies in the same level as Bitcoin include Monero, Litecoin, and Dai.
Mary Beth Buchanan, who is the current general counsel at Kraken said:
“It’s our hope the SEC [the U.S. Securities and Exchange Commission] will view this as a positive step.” She added that the CRC “It “does show the SEC what each exchange is doing to come to a decision.”
Read also: Bitcoin price prediction: Bakkt launch triggered September’s plunge – Confluence Detector
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