San Francisco-based Coinbase has joined forces with other leaders in the crypto industry to form Crypto Rating Council, a member-operated organization formed to help market participants that trade or support digital assets comply with U.S. federal securities laws.
Coinbase is proud to be a founding member of the CRC because we believe that practical compliance tools can help the entire industry support the growth and mass adoption of cryptocurrencies in the U.S and around the world. Read more about it on our blog: https://t.co/xULOR5OPLc https://t.co/YcXPF5ykh9
— Coinbase (@coinbase) September 30, 2019
According to the announcement, the following companies comprise the founding members of the Crypto Rating Council: Anchorage, Bittrex, Circle, Coinbase, DRW Cumberland, Genesis, Grayscale Investments and Kraken.
“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,” states Coinbase. “These legal experts then use the Council’s framework to establish a rating for each asset under review. Member firms, typically acting through in-house lawyers, then deliberate and vote whether to adopt the rating. All scores published by the Council are the result of this analytical and deliberative process. We expect and look forward to welcoming more organizations to the Council over time.”
The asset ratings will score between 1 and 5. A score of 1 means the asset shares few or no characteristics consistent with a traditional regulated security. A score of 5 suggests that the asset is strongly consistent with a security.
Coinbase notes that these ratings are completely independent and are not endorsed by by the SEC, CFTC, or any government agency, developer team, or other third parties.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.