The Crypto Rating Council (CRC), which includes major representatives of the US cryptocurrency industry, has presented rules for determining the rating of digital assets.
Founded in 2019, the organization includes companies such as Coinbase, Kraken, Anchorage, and Circle. The CRC rating shows that a digital asset meets the definition of a security. The organization has already published ratings for 27 cryptocurrencies, but until now, the calculation method was unknown.
Now CRC has submitted a document with updated rules for calculating the rating, which is in line with the “current regulatory environment.” As part of the assessment, a series of questions is asked, the answers to which are calculated in points and as a result, the final rating of the asset is obtained.
Note that the rating provided by the CRC is a recommendation only. The final decision on whether cryptocurrency is considered a security is made by the US Securities and Exchange Commission (SEC).
The regulator is currently in litigation against the management of Ripple on charges of unregistered sale of securities. Interestingly, XRP received a 4 out of 5 rating from CRC, which means that the asset came close enough to defining a security.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.