The U.S.’ top crypto wizards are forming a council of elders. Formally called the Crypto Rating Council, these cryptomancers are banding together to communally decide which digital assets are likely to raise red flags with regulators.
- Founding wizards: Anchorage, Bittrex, Circle, Coinbase, DRW Cumberland, Genesis, Grayscale Investments, and Kraken.
The big question before the Council: Does this token walk and talk like a security? It’s an important question. If the SEC says a token is a security, that means it’s subject to strict federal laws and more regulation.
Coinbase says the Council has created a “scalable, points-based rating system” to determine the likelihood that a crypto is a security. A score of 1 means the token is probably in the clear (bitcoin earned a 1). A score of 5 means the SEC SWAT team is probably about to bust down the door.
+ It’s already publishing ratings: See for yourself.