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

posted 18 days 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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