The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Coinbase and Kraken Form New Crypto Ratings System – Bitcoin, Ethereum, XRP, Litecoin, EOS, Stellar, Monero

by Daily Hodl Staff
September 30, 2019
in Altcoins

San Francisco-based digital asset exchanges Coinbase and Kraken are introducing a new points-based rating system that suggests whether cryptocurrencies are subject to US securities laws.

According to Coinbase’s official blog post,

“The result of the analysis is a score which makes it easy for members to synthesize the analysis across many tokens and make their own, independent business decisions about whether or how to support [or list a cryptocurrency].”

The system uses guidance provided by the US Securities and Exchange Commission (SEC). It was created by the Crypto Rating Council (CRC), an organization that lists Anchorage, Bittrex, Circle Internet Financial, Coinbase, DRW Cumberland, Genesis Trading, Grayscale Investments and Kraken as its founding members.

The CRC system aims to provide regulatory clarity on whether digital currencies like Bitcoin should be treated as securities. Its goal is to help companies analyze the legal aspects of crypto projects and to assist financial services firms that are planning to add support for certain crypto assets, but are not sure whether they comply with regulatory requirements.

The framework rates cryptocurrencies on a scale of one to five, with a rating of one assigned to assets that have very few characteristics of traditional financial instruments or do not meet any of the criteria of a security. A rating of five means that the asset is most likely a security.

Coinbase’s management clarifies that the Council’s ratings are determined independently. 

“The [ratings] are not endorsed by the SEC, Commodity Futures Trading Commission (CFTC), or any government agency, developer team, or other third party, and they are not legal advice.” 

Although the Council may seek feedback from development teams, crypto project developers have no influence over the analysis process and the majority of the ratings have been assigned without obtaining information directly from developers, the announcement states.  

Bitcoin (BTC), Litecoin (LTC) and Monero (XMR) are least likely to be subjected to securities laws, the rating framework suggests. The Ripple-associated XRP token appears to fit the criteria of a financial security, according to the rating system.

Source: CRC Ratings

CRC Ratings
1 – least likely to be a security  5 – likely to be a security

  • Algorand (ALGO) – 2.00
  • Augur (REP) – 3.75
  • Bitcoin (BTC) – 1.0
  • Chainlink (LINK) – 2.0
  • Dai (DAI) – 1.0
  • Decentraland (MANA) – 3.75
  • EOS (EOS) – 3.75
  • Ethereum (ETH) – 2.0
  • FOAM (FOAM) – 3.75
  • Hedera Hashgraph (HBAR) – 3.75
  • Litecoin (LTC) – 1.0
  • Loom Network (LOOM) – 3.75
  • Maker (MKR) – 4.5
  • Monero (XMR) – 1.0
  • Numeraire (NMR) – 2.0
  • Polymath (POLY) – 4.50
  • Stellar (XLM) – 3.75
  • Tezos (XTZ) – 3.75
  • XRP (XRP) – 4.00
  • Zcash (ZEC) – 2.00
    Source: CRC Ratings
Ripple’s management is currently fighting a lengthy court battle in which it faces allegations that XRP is a security and should be subjected to US securities laws. Meanwhile, Ripple CEO Brad Garlinghouse highlights a report from the UK Financial Conduct Authority that classifies XRP as an exchange token, not a security.

Coinbase notes in the announcement,

“We expect that some ratings will change over time and we will accept and consider feedback from asset issuers when they want to share additional information or clarifications that may impact an asset’s rating.”

[the_ad id="42537"] [the_ad id="42536"]
Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Submit a Press Release

Industry Announcements

  • Bunzz Raises $4.5 Million Seed Round To Expand Its Smart Contract Hub for DApp Development
    January 24, 2023
  • Dogecoin and Shiba Inu Better Watch Out – Floki Just Had Three Big Things Happen for It
    January 24, 2023
  • Crypto Marketing – What Initiatives Will Bring More Value and Users in 2023
    January 23, 2023
  • Make Crypto Payments on BChat Web 3.0 Messenger – BChat Integrates Beldex Wallet
    January 22, 2023
  • KEY3.id Supports Multi-Chain Transaction, Partnership With KuCoin Wallet, CoinHub Wallet and Wallet3 To Launch 2023 Lucky Transaction Campaign With Over 30,000 Participants on Social
    January 20, 2023
  • Deposit EUR/GBP at Zero Percent Fees With Newly Launched SEPA/FPS Channels on Bitget
    January 19, 2023
  • Coinbase Lists Kava, Advancing Ethereum–Cosmos Interoperability
    January 18, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$23,020.17
$23,020.17
0.35%
Ethereum
$1,567.43
$1,567.43
1.6%
Cardano
$0.382932
$0.382932
0.3%
XRP
$0.409574
$0.409574
0.3%
Dogecoin
$0.087897
$0.087897
0.99%

Spotlight

  • Low Cap Ethereum-Based Altcoin Goes on 170% Run Following Release of New Roadmap
    January 23, 2023
  • Largest Crypto Wallets To Support Major Shiba Inu (SHIB) Upgrade As Dogecoin Rival Holds 70% Gains Year-to-Date
    January 26, 2023
  • Crypto Analyst Says Bitcoin Eyeing Massive Surge After Breaking Through Major Hurdle – Here’s the Timeline
    January 21, 2023
  • Ethereum-Based Gaming Altcoin Suddenly Erupts Ahead of $60,000,000 Token Unlock
    January 24, 2023
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl