Coinbase-Backed Crypto Rating Council Adds 3 New Members and Publishes New Crypto Asset Ratings

Key highlights:

• The Crypto Rating Council (CRC) was established by prominent crypto industry players
• The organization rates crypto assets on the basis of how much they resemble traditional securities
• CRC has added 3 new members and published 5 new ratings

Crypto Rating Council (CRC) is an organization established by major cryptocurrency industry names including Coinbase, Kraken, Bittrex and Grayscale Investments in 2019. 

The stated aim of CRC is to analyze individual crypto assets and assign a score to them depending on how much they resemble “traditional regulated securities” - the higher the score, the more similar a crypto asset is to a security, according to the CRC. It should be noted that the CRC is specifically focused on securities regulations in the United States.

New CRC members and 5 new crypto ratings

The CRC has now published an update, announcing three new members – eToro USA, OKCoin and RADAR (the developers of Radar Relay).

In addition, the CRC has published its ratings for 5 previously un-rated crypto assets. The ratings range from 1-5 – as explained previously, a higher rating means the CRC has identified that the crypto asset has a higher resemblance to a security. For reference, Bitcoin has a rating of 1 – this is not surprising to see, since BTC is treated as a commodity in the United States by all the relevant authorities.

Here’s the scores for the newly-rated cryptocurrencies:

• Cosmos (ATOM) – 3.75
• Ethereum Classic (ETC) - 2
• Dash (DASH) – 1
• Horizen (ZEN) – 1
• Livepeer (LPT) – 3.75

For more details, you can check out the CRC’s ratings page here.

Of course, these ratings only represent the opinion of the organization. For existing ratings, the organization has also revised its descriptions about the properties of each crypto asset. 

While it’s currently unknown exactly how the CRC arrives at its ratings, the organization says that it will be releasing its analytical framework to the public in the future. We can also expect additional members to join the CRC moving forward. Juan Suarez, a general counsel at Coinbase who works with the CRC organization, spoke to CoinDesk and commented:

“We’re going to release the framework in the hopes that it creates a useful discussion for the industry and we’re going to recruit more members.”