The latest Coinbase news show that the question of whether certain cryptocurrencies constitute securities is being asked again. The Coinbase Rating Council made sure to make this topic relevant within the blockchain industry and up their efforts to bring more understanding to this issue.
The Crypto Rating Council, also known as CRC, is a group of big crypto firms in the United States which advocates and promotes regulatory clarity in crypto. As of recently, the CRC or Coinbase Rating Council evaluated a number of new cryptocurrencies in order to determine whether they should show signs of being securities.
A blog post published on April 2 in the cryptonews shows that the CRC outlined an introduction to ratings for three new cryptocurrencies, including Basic Attention Token (BAT), USD Coin (USDC) and IOTA (IOTA). In this post, the CRC also noted that it periodically reviews the previously published scores based on new developments, as well as understanding the available facts.
As such, the Coinbase Rating Council has updated scores for Maker (MKR) and Polymath (POLY) as listed in the announcement. Previously, we reported that CRC ranks cryptocurrencies on a scale of 1 to 5, based on whether they are considered a security that cannot be issued, sold or traded by unregulated firms. The CRC analysis is not endorsed by developer teams, regulators or any other third parties.
In the latest update of the CRC ratings page, we can see that IOTA scored a 2.00 and is not likely to be viewed as a security. A subsequent blog post by IOTA showed that the rating will protect the project gain more credibility in the US market, stating the following:
“With our Crypto Ratings Council rating, we believe the US market and CRC’s partner organizations will feel more comfortable and confident engaging with the IOTA token and protocol.”
Meanwhile, the Coinbase Rating Council gave the USD Coin (USDC) a score of 1.00, and it gave Basic Attention Token (BAT) and Ethereum (ETH) scores of 2.00 just like IOTA. This indicates that all of these should not be considered a security, especially USDC as a stablecoin.
Established in 2019, the CRC is a collaboration of crypto firms including Coinbase, Kraken, Bittrex and others.
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