Crypto industry leaders are taking the initiative to help businesses in the space avoid conflict with the rules of values.
In a company blog, Coinbase announced that it has co-founded the classification of Crypto Council proposed a member organization help companies with cryptocurrency determine compliance with federal securities laws current US ..
Coinbase joined in launching seven other companies: Anchorage, Bittrex Circle DRW Cumberland, Genesis, grayscale Investments and Kraken.
As part of the effort, the Council will issue a rating of 1-5 for a given similarity cryptocurrency pool or a guarantee. Under the system of classification, a 1 is an active cryptography few functional similarities to a value, while 5 would be consistent with the definition of a value.
From now on, the board crypto valued assets 20 with the top cryptocurrency by market capitalization, bitcoin a score 1. In particular, XRP, manufacturer (MKR) and polygraph (poly) landed scores of 4 or 4.5 .
The Grading Council Crypto says that the classification system – which states is not investment advice – is based on guidance and case beyond the law of the SEC, and legal and technical expertise of companies They make up the group.
Association of Blockchain Kristin Smith said CoinDesk Coinbase initially spearheaded the initiative.
“[It is] an effort by the industry to comply with the laws of incredibly complex values [US],” Smith said.
For now, only tokens listed exchanges participating in the Council have been evaluated and released, with more to follow. Assets receive a 5 can not be revealed by the Council CoinDesk Smith he said. evaluations of all assets are subject to change, warned Coinbase blog.
Coinbase Chief Legal Officer Brian Brooks later said CoinDeks that the Council did not reveal 5 guest – from members unable to attend these assets bags.
“From a rating of 5 indicates that the asset can only be included in a stock exchange or ATS registered by definition, those qualifications are not published because the assets do not appear by any member,” said Brooks CoinDesk.
If council members after you obtain approval to operate ATS platforms by regulators such as FINRA, which may change, he added.
However, CEO Binance bag, Changpeng “CZ” Zhao, was skeptical of the new classification system, saying on Twitter:
The guys who score above 2 should form their own counsel and re-rate everything again.
— CZ Binance (@cz_binance) September 30, 2019
The formation of the council comes from the hand movement ripple payment network to dismiss a lawsuit from his cryptocurrency XRP. Undulation, said in his presentation that XRP is not a value, although this was not a central argument in its motion to dismiss.
Coinbase CEO Brian Armstrong image via CoinDesk archives