CRC's Ratings Good News For BAT, IOTA; Not For Ripple

Zain  |  Apr 4, 2020

The question of whether specific cryptocurrencies qualify as securities are gaining incredible relevance within the blockchain industry. As such, some prominent names in the space are leaving no stones unturned in their endeavours to bring more understanding to the issue. CRC is one of the leading names.

The Crypto Rating Council, or CRC, is a group of major United States' crypto firms that provides advice and promotes regulatory clarity in crypto. Recently, the CRC looked into a host of new cryptocurrencies to check whether they are showing characteristics of being securities or not.

CRC was launched in Sept 2019, with the aim to figure out which cryptocurrency fits the security and thus be regulated by the United States securities and exchange commission. The CRC came up with a way of determining by using a numeric meter. It had a rating system from 1 to 5, in which the higher the number,  higher the chances of a cryptocurrency being labelled security and therefore can't be sold separately by firms.

Five new digital assets have made their way to CRC, and it's public online ratings. Popular cryptocurrencies like Dash (DASH), Ethereum Classic (ETC), Cosmos (ATOM), as well as lesser-known altcoins like Horizen (ZEN) and Livepeer (LPT) have been added to the CRC.

IOTA's token scored a 2.0, which suggest that it is far away from being categorized as a security according to CRV's system. It is one of the top 30 cryptocurrencies by market capitalization and it made a post stating that recognition like this would further enhance the reputation of the coin. The blog said that with a solid rating for IOTA confirming its status further as a non-security, they believe that more people in the US would engage with the token.

XRP Woes Highlighted in CRC's Rating Too

Similarly Basic Attention Token (BAT) also scored a 2.00 rating. XRP, the third biggest currency after bitcoin and ethereum which has always had its issues with the security claims against it, scored a 4.00, adding further to the list of voices that claims it as one.

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