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The Crypto Rating Council (CRC) is pleased to announce BlockFi and Bitstamp as its two newest members. Since CRC’s launch last fall, the member operated CRC has made steady progress engaging the developer community, recruiting new members, and producing additional asset scores.

Bitstamp is one of the world’s longest-running cryptocurrency exchanges, supporting investors, traders and leading financial institutions since 2011. With a proven track record, cutting-edge market infrastructure and dedication to personal service with a human touch, Bitstamp’s secure, regulated trading venue is trusted by over four million customers worldwide.

BlockFi is a financial services company founded in 2017. BlockFi develops products for cryptocurrencies and services clients in over 100 countries and in all 50 U.S. states. BlockFi’s offerings include interest-earning accounts, low-cost USD loans secured by crypto and fee-free trading and is backed by leading institutional investors and operates with a focus on compliance with U.S. …

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The Crypto Rating Council (CRC) is pleased to announce digital asset trading platform CrossTower as its newest member. Since CRC’s launch and initial publication of 20 asset scores last fall, member owned and operated CRC has made steady progress engaging the developer community, recruiting new members, and producing additional asset scores.

Founded in 2020, CrossTower is an exchange operator founded by capital markets veterans on a mission to mainstream digital asset trading and investing. …

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The Crypto Rating Council (CRC) is pleased to announce the publication of three new asset scores and updates to two previously-published scores.

The newly published scores are for: Basic Attention Token (BAT), USDCoin (USDC), and Iota (IOTA), each of which are traded, transacted or supported in some capacity as a non-security by at least one CRC member’s U.S. business. The CRC also periodically reviews previously published scores based on new developments and its understanding of available facts and has updated scores for Maker (MKR) and Polymath (POLY). …

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Since the launch of the Crypto Rating Council (CRC) and the initial publication of twenty asset scores last fall, we have made steady progress engaging the developer community, recruiting new members, and producing additional asset scores. Today, the CRC is pleased to announce the addition of three new members and the publication of five new asset scores.

New Members

We are pleased to announce these new CRC members:

  • OKCoin. OKCoin is a leading global crypto exchange founded in 2013. OKCoin offers fiat trading support for major crypto assets and expanded operations to the U.S. in 2018.
  • RADAR. RADAR develops innovative blockchain technology, including RELAY, a peer-to-peer trading application for ERC20-compatible tokens. RELAY supports trading crypto assets for users in the U.S. …

We have received a tremendous response to the announcement of the Crypto Rating Council and the release of the asset ratings. Many are excited by efforts by industry to provide enhanced clarity and industry-led securities law compliance tools. We welcome this support, interest, and many prospective new members. We are happy to provide additional details about our Framework and scoring methodology in response to questions we’ve received after launch.

As discussed on our website, our Framework is based on the Howey test — a four prong analysis that is used to determine when a given asset or instrument may be an investment contract, and therefore a security. If any one of the prongs is not met, the Howey test as a whole fails for that particular asset, meaning it would not be an investment contract. The digital asset analysis Framework reflects an effort by the Council to apply existing case law and guidance published by the SEC in a systematic and objective way to the different prongs of the Howey test, weight dozens of different factors, and apply a scaling methodology to arrive at a score on a 5 point scale. A 1 is intended to signal that there are fewer factors present while a 5 signals there are more factors present. Understanding that there may be greater or fewer factors present is intended to be a tool to help members make individual determinations of the potential legal classification of a given asset, but the score is not dispositive. Some assets with high scores may have many characteristics associated with securities but there still may be persuasive legal reasons to conclude differently. …

About

Crypto Rating Council

Leading crypto financial services firms committed to practical compliance with the U.S. securities laws.

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