eToro has joined the Crypto Ratings Council (CRC), a statement from the Coinbase-backed group has confirmed.
The CRC brings together a group of major U.S-based cryptocurrency firms and platforms. As per the group, the main aim is to establish a standard framework that can be relied upon in assessing whether a given cryptocurrency is likely, or not, a securities token.
eToro and OKCoin join CRC
Other than eToro, the other two firms to join the Crypto Ratings Council are OKCoin U.S. and Radar. With these additions, the CRC membership now stands at eleven. The team had grown to eight members since its launch in late 2019.
Before announcing the new members, the Crypto Ratings Council team included U.S.-based crypto exchanges Coinbase, Kraken, and Bittrex. Others to support the initiative are Circle, a crypto-finance platform backed by Goldman Sachs and major investment firm Grayscale Investments. There is also Genesis Global Trading, Anchor Labs, and Cumberland crypto- a DRW Holdings company.
Coinbase VP and general counsel Juan Suarez told Coindesk via a phone call that the new entrants come with a wealth of technical and legal information. According to him, that information is going to bolster CRC’s initiatives.
The Crypto Ratings Council publishes its crypto ratings online, with digital assets given a rating of between 1 and 5. The lowest score of 1 denotes that a given cryptocurrency is likely not a security. On the other hand, a score approaching a high of 5 means that the asset is likely a security token.
Currently, six cryptocurrencies have a score of 1.00 according to the group and are likely not to be declared securities. Apart from Bitcoin (BTC), the others are Litecoin (LTC), privacy coins Dash (DASH) and Monero (XMR), MakerDAO’s Dai (DAI) and Horizen (ZEN).
Ethereum (ETH) and Ethereum Classic (ETC) are both rated 2.00, suggesting the likelihood that they might be deemed securities. Of the top coins, XRP has the highest rating of 4.00 to suggest it is highly likely to be declared a security token.
Not everyone agrees with Crypto Rating Council’s figures, with questions raised about how the ratings are arrived at. In its press release Thursday, Coinbase notes:
“The CRC’s analysis is [our] own and is not endorsed by developer teams, regulators or any other third party.”
Every firm in the group reportedly reviews the ratings before they get published online. Besides, each of those coins added on the ratings is offered by at least one of the trading platforms, brokerages or exchanges in the CRC group.
The U.S. Securities and Exchange Commission (SEC) has in the past stated that Bitcoin (BTC) and Ethereum (ETH) are not securities. However, there has been no such pronouncement regarding any other cryptocurrency. Recent comments from a top CFTC official could not place XRP under either the Commodity Futures Trading Commission or the SEC.
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