The Crypto Ratings Council (CRC) assesses whether various cryptocurrencies are securities under the United States law. It has inducted new members into the organization.
The Coinbase-led organization announced that eToro, Radar, and OKCoin US joined the crypto assessing committee. The aim is to restructure how exchanges measure whether digital currency is security.
The inclusion of OKCoin US, social trading network eToro, and tech platform, RADAR, brings the number of members to eleven.
According to an official post, “Members are committed to the responsible growth and maturation of crypto-asset markets and share a belief that practical compliance tools can accelerate the growth of our industry.”
We’re pleased to announce that @OKCoin USA, @eToroUS and @RadarRelay have joined the Crypto Rating Council, which is also publishing 5 new asset ratings today. Learn more at https://t.co/f7mmsfoO2r and in today’s announcement: https://t.co/vsb2YMsmNt
— Crypto Rating Council (@CRC_Crypto) January 16, 2020
CRC new addition to boost transparency
Juan Suarez, liaison with CRC, said the acquisition aims at promoting transparency and enhancing securities under US law.
Suarez, VP and general counsel at Coinbase liaising with CRC noted, they will also assist in technical and legal areas.
“The new members bolster the level of technical and legal information that the group can utilize,” he explained.
Moreover, he disclosed that it is using a scale of 1-5 for ratings. One shows that the crypto does not have the qualities of a security as per the US laws. The group rated five new assets where cosmos (ATOM) as-well-as livepeer (LPT) were to have a score of 3.75. Meanwhile, DASH as well Horizen (ZEN) both received a score of 1 with the Ethereum Classic (ETC) scoring a 2.
Suarez also claims that the CRC will reorganize the explanations on its existing list. Although the ratings would not change the reasoning behind whether each asset resembles security will be condensed.
Notably, the release also revealed that CRC is expected to roll-out its analytical framework, publish additional asset scores. And also continue to engage the developer community in the meantime.
Although, the CRC has witnessed criticism for lack of transparency about how they asses the assets with various people on Twitter calling for the release of the framework.