Crypto Rating Council Adds IOTA, BAT and USDC, While Ripple Gets Ignored
The Crypto Rating Council (CRC) is a consortium of United States-based crypto firms who advocates for better regulatory clarity in the crypto space and is backed by the likes of Coinbase, Kraken, Bittrex, and others.
Given the growing debate over whether cryptocurrencies fall under the security category apart from Bitcoin (BTC) and Ethereum (ETH) (they are considered as assets, given the level of decentralization and transparency), they analyzed a number of digital assets to determine whether they possess traits of Security.
In a blog post dated 2nd April, CRC revealed that they have inducted three new cryptocurrencies in its list with different ratings which include Basic Attention Token (BAT), USDCoin (USDC), and Iota (IOTA). The blog post also revealed that the recent analysis was based on reviewing their previous ratings along with new developments and available information in the public domain. CRC also updated the scores for Maker and Polymath tokens.
How Do CRC Ratings Work?
CRC rates each token on a scale of 1-5, the higher the rating, the higher its chances of showing traits of security. Security ratings are important since it ensures that these are not sold unregulated. Every country has different security laws and they must adhere by them and have a regulatory clearance before making it into the market. However, it is also important to note that CRC is not affiliated to any government body and its ratings are not endorsed by any developers, regulators or third-parties.
The CRC rating gave IOTA an overall score of 2.00 which makes it unlikely for it to be considered as a form of security. IOTA has always claimed to be among the decentralized projects and belive the current rating by CRC would really help it expand its credibility in the US market. The firm responded to their rating of 2.0 saying,
“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.”
Apart from IOTA, even BAT scored a 2.00 rating on CRC while USDC scored the lowest of 1.00 suggesting it inhabits the least qualities of security. USDC which is a US Dollar backed stablecoin, even DAI, the decentralized stablecoin scored 1.00 on CRC ratings suggesting stablecoins shows the least traits of security.
Ripple Shows High Traits of Security
Ripple backed XRP token when evaluated by the CRC back in 2019 scored 4.00 rating that suggest it shows high traits of Security. While CRC ratings are not taken into consideration by any government-affiliated agency or security regulators and probably won’t change any of their opinions, but Ripple is facing a lawsuit for being security in the United States. XRP still maintains a rating of 4.00 on CRC.