Top crypto exchanges including Coinbase, Kraken, and Bittrex create a system rating cryptos likely to be securities

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.”

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