Coinbase, Kraken and others develop system to determine cryptocurrency security status

posted 5 months ago
The recently formed Crypto Ratings Council (CRC), comprised of finance giants such as Coinbase, Circle Internet Financial, Bittrex, and Kraken, devised a crypto rating system which will denote the security classification status of a cryptocurrency. All in an effort to highlight which tokens should, and shouldn't be listed and traded.

The method will work via a "scalable, points-based rating system." If a cryptocurrency is deemed a security, regulation requires investor registration, accreditation, and disclosure. The CRC test is "derived directly from SEC guidance and case law... based on objective, repeatable, fact-driven questions that can be answered consistently by technical experts across different assets and over time." This method marks a step towards self-regulation, and will perhaps minimize investor deception or confusion.
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