The uncertainty about whether certain digital currencies will offset securities is becoming increasingly important in the blockchain community. Because of this question mark, some key players in this growing industry are improving their game to provide more clarity on this confusion.
The Crypto Rating Council (CRC), a group of all major US cryptocurrency companies, advocates regulatory clarity in the field of cryptocurrency. Recently, the CRC has been evaluating several new digital currencies to see if they are leaning toward securities rather than cryptocurrencies.
USDC, BAT and IOTA rated by CRC
On April 2, the CRC published a blog post by Medium detailing the initial valuation of three new crypto assets, including the Basic Attention Token (BAT), USDCoin (USDC), and IOTA. According to the post, the CRC stressed that it occasionally reviews pre-published definitions based on new events, understanding the available facts. According to the announcement, the CRC has also taken into account results for Maker (MKR) and Polymath (POLY).
The The CRC crypto rating tool rates digital assets on a scale from one to five. with the highest score indicating that a particular crypto is more of a security that cannot be issued, sold, or traded by companies that are not regulated by the SEC. In particular, the CRC analysis is not endorsed by the developers, regulators or intermediaries.
The Crypto Rating Council declares IOTA to be no security
According to the CRC ratings IOTA scored 2.00 which means it is unlikely to be reported as collateral. IOTA is one of the top 50 cryptocurrencies by market capitalization. According to a subsequent blog post, IOTA stated that its new assessment would give the project more integrity in the crypto market.
“With our rating from the Crypto Ratings Council, we believe that the US market and CRC’s partner organizations will feel more comfortable and secure with the IOTA token and protocol.”
On the other hand the Brave Browser’s Ethereum-based Basic Attention Token (BAT) also received a rating of 2.00.
In addition, USDCoin stablecoin, which is supported by major crypto companies such as Coinbase and Circle, scored 1.00 points. This evaluation makes it clear that the stable coin is not a security. Another similar stable coin, DAI, also scored 1.