Crypto Rating Council Adds eToro, Radar and OKCoin, Will Release Framework Before Year-End
Crypto Ratings Council which is a group being led by Coinbase and is hopeful of coming up with a framework to analyze if various cryptos can be classified as securities as per the US law, has announced the addition of new members, CoinDesk reports.
The council announced that Radar, eToro as well as OKCoin US are the new entrants to the group which aims at coming up with standards that will be used by the exchanges to assess if different cryptos are a security or not. According to Juan Suarez who is Coinbase’s counsel working with the CRC, the new entrants will help in enhancing both the technical and legal aspects within the group.
Suarez also revealed that each CRC member is given the priority of reviewing the rating prior to being made public while each asset must be listed by one member.
Suarez also explained that assets are rated using a scale of 1-5 where 1 shows that the crypto in question does not have the qualities of a security as per the US laws. On Thursday, the group rated five new assets where cosmos (ATOM) as well as livepeer (LPT) were to have a score of 3.75. Meanwhile, DASH as well Horizen (ZEN) both received a score of 1 with the Ethereum Classic (ETC) scoring a 2.
CRC is also set to refine the explanations given in its present list. Suarez explained that although the ratings will remain intact, the reasoning denoting whether an asset is a security are set to be condensed. He went ahead to state that it is only the operations of the firm that will be altered to make the bullets more explicit.
CRC stated that it is not in any way affiliated with the SEC which has the mandate to assess and announce if a crypto is a security and has only so far said that Bitcoin as well as Ethereum have no security characteristics.
CRC has come under sharp criticism for lack of transparency about how they asses the assets with various people on Twitter calling for the release of the framework.
With all due respect to the CRC, its asset rating framework should have been released *before* any of the actual ratings. Without seeing that framework, we can't even begin to assess how credible the ratings are. In my view, no more should be done until the framework is released. https://t.co/V5xuk8Cmfb
— Jake Chervinsky (@jchervinsky) January 16, 2020