The question of whether certain cryptocurrencies constitute securities is becoming increasingly relevant within the blockchain industry. As such, some core players in the space are upping their efforts to bring more understanding to the issue.
The Crypto Rating Council, or CRC, is a group of major United States’ crypto firms that advocates and promotes regulatory clarity in crypto. Recently, the CRC evaluated a number of new cryptocurrencies to determine whether they should show signs of being securities.
Three new tokens are analyzed
In an April 2 blog post, the CRC published an introduction to ratings for three new cryptocurrencies including Basic Attention Token (BAT), USDCoin (USDC), and Iota (IOTA). In the post, the CRC noted that it periodically reviews previously published scores based on new developments, as well as an understanding of available facts. As such, the council has also updated scores for Maker (MKR) and Polymath (POLY), the announcement reads.
As previously reported, CRC’s asset ratings tool ranks digital assets on a scale of 1 to 5, where the highest score means that a certain token is likely considered a security that cannot be issued, sold, or traded by unregulated firms. The CRC’s analysis is not endorsed by developer teams, regulators, or any other third party.
IOTA is unlikely to be considered a security
In a subsequent blog post, IOTA outlined that the rating will help the project gain more credibility in the U.S. market, stating:
“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.”
Stablecoins scored 1.00
Similarly, Basic Attention Token, an Ethereum token that powers Brave’s blockchain-based digital…