Coinbase announced on 30 September the formation of a crypto rating council, to cater to the needs of market participants who trade digital assets.
Coinbase started by informing that this initiative was to help crypto oriented parties to adhere to US federal security laws. Coinbase sustained by adding that founding members of the council include Bittrex, Anchorage, Circle, Coinbase, DRW Cumberland, Genesis, Grayscale Investments and Kraken. The exchange major emphasized that such council is important to categorize digital assets into either commodity, currency or security.
Coinbase expressed the need to float such an institution by citing –
“This challenge prompted Coinbase to bring together several industry leaders and securities law experts to create a scalable, points-based rating system centered around a set of several dozen, yes / no factual questions. These questions are derived directly from SEC guidance and case law and are designed to address important characteristics that inform whether an asset is or is not a security.”
Coinbase further added by sharing an insight that such endeavors help enterprises to score and quantify their efforts towards supporting assets. The exchange firm noted that the council was formed by consulting with technical experts at the participating entities. Coinbase substantiated that the rating was the result of a tedious process of deliberations. The firm added that it looked forward to welcoming more organizations in the future.
Coinbase noted on the logistics of the rating explaining that it was set from one to five scale. With one, the asset would be totally devoid of all features to be classified as a security. With five ratings, the asset stands a firm chance to be categorized into security. Coinbase emphasized that it would publish the rating for most of the assets that are in force for businesses. The firm added that these ratings were also subject to change based on feedback and performance.
Coinbase reported that many varsities were considering to offer blockchain and cryptocurrency courses. Coinbase went on to add many statistics highlighting that the percentage of universities offering such courses had increased. Another surprising aspect was that crypto courses were offered in domains other than the core. Also, students were expressing increased interest to opt for such courses. Coinbase noted that Cornell University was taking the lead to foster such courses even though the main area of interest was computer science.