A number of cryptocurrency firms in the US (like Bittrex and Coinbase) have collaborated to form a regulatory and governing body called the Crypto Rating Council (CRC). This council will score the digital assets from one to five, with a higher score representing the assets to be secure, thereby disallowing unregulated firms to issue, deal or trade them.
The CRC aims at providing investors an outlook on the authenticity of tokens and provide them information about which tokens they can trade freely without supervision by various regulatory authorities. Moreover, CRC is looking to recruit more firms into the council with the objective of increasing its market presence.
There are fairly mixed views on the establishment of this council among the crypto community. On the one hand, people believe that the council would bring reliability and legibility in the crypto industry, facilitating more involvement from investors. While some believe that regulators in the US would view the council not as a self-regulatory body, but as a delusional entity which will create more ambiguity in terms of crypto legitimacy, thereby rendering regulation all the more essential. Another concern is the fact that despite the existence of this council, regulatory bodies such as the Securities Exchange Commission (SEC) will not alter their classifications of cryptocurrencies.
Sean Keefe, managing partner at crypto investment fund Straight Up Capital said that there are many skeptics who argue that the very premise of the council is based on centralization, which contradicts the core tenets of cryptocurrencies. He said,
“The key will be how effective CRC will be in maintaining a decentralized governance, that is aligned with the users and developers of crypto. The goal of blockchain and crypto and is to create access, limit centralization, and promote transparency, if the CRC achieves those outcomes it will be a positive outcome.”
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