On Sept 30th, Wall Street Journal (WSJ) reported that US-based exchanges have set up a Crypto Ratings Council on which tokens can be traded without the supervision of regulators.
Other members of the Crypto rating council will include:
- Circle Internet Financial
- Bittrex, Genesis Global Trading
- Grayscale Investments
- Anchor Labs and DRW Holdings’ Cumberland unit.
The group continues to recruit participants, the report notes.
Digital asset rankings
The new crypto council is expected to set up officially on Sept 30th. It will be publishing online ratings for digital assets on a scale of 1 to 5.
The token with the highest score will be ‘considered as a security that cannot be issued, sold or traded by unregulated firms.’
Brian Brooks, chief legal officer of Coinbase, reportedly came up with the rating system, emphasizes that the question of whether a certain token is a security or not is “one of the biggest uncertainties around crypto and the reason why more asset managers are not comfortable with it.”
Mary Beth Buchanan, Kraken’s general counsel hoped that the U.S. Securities and Exchange Commission (SEC) will ‘view the initiative as a positive step, claiming that the council aims to show the regulator the exchanges’ efforts to come to a decision on the matter.’
On Sept 26th, SEC Commissioner Hester Peirce, also known as Crypto Mom in the community expressed frustration with the pace of the SEC regulation.
“If you want a government that’s more forward-thinking on innovation, that means that if something goes wrong, you can’t go running back to the government and say ‘Hey, you didn’t protect me from myself!’ […]I think we need to be a little less paternalistic.”
Participatory council members are also members of the Blockchain Association, ‘a lobbying group that backs a House bill that would exempt many cryptocurrencies from SEC rules’.