IOTA Receives Crypto Ratings Council Rating
We are excited to announce that the Crypto Ratings Council has formally issued its rating for the IOTA token.
What is the Crypto Ratings Council?
The Crypto Ratings Council is composed of industry-leading crypto businesses committed to a common framework to assess digital assets for adoption in the United States. It is a self-governing body that creates a rating or ‘score’ to assist its members and policymakers to better interface with digital assets. This score follows case law and SEC guidance to determine whether a digital asset may be considered a security now or in the future.
From the CRC Website:
At the core of the Crypto Rating Council is our securities rating framework, a points-based rating system built upon a set of factual questions that assess each element of the legal test that courts use to determine whether an asset is a security. Our framework is derived directly from case law and SEC guidance and has been structured to emphasize objective, repeatable, and fact-driven responses that can be answered more consistently across different assets and across the same asset over time.
At the core of the Crypto Rating Council is our securities rating framework, a points-based rating system built upon a set of factual questions that assess each element of the legal test that courts use to determine whether an asset is a security. Our framework is derived directly from case law and SEC guidance and has been structured to emphasize objective, repeatable, and fact-driven responses that can be answered more consistently across different assets and across the same asset over time.
Why is a rating from the Crypto Ratings Council important?
As the industry waits for more regulatory clarity on digital assets, key players have come together to build a rating system to show their proactive approach to governance and compliance. By issuing a rating collectively, individual Crypto Ratings Council members feel more comfortable and confident listing a digital asset on their respective platforms.
The scoring system is set from 1 (most preferred) to 5 (least preferred). As described on the CRC website:
The analytical framework results in a score between 1 and 5 for each asset we review. A score of 1 means the Council’s analysis suggests the asset has few or no characteristics consistent with treatment as an investment contract, and therefore a security, under the U.S. federal securities laws. A score of 5 means the Council’s analysis suggests that an asset has many characteristics strongly consistent with treatment as a security.
The analytical framework results in a score between 1 and 5 for each asset we review. A score of 1 means the Council’s analysis suggests the asset has few or no characteristics consistent with treatment as an investment contract, and therefore a security, under the U.S. federal securities laws. A score of 5 means the Council’s analysis suggests that an asset has many characteristics strongly consistent with treatment as a security.
The CRC has recommended a score of 2.0 for IOTA. This is a strong score for the IOTA technology, community and ecosystem, as it shows our commitment, since day one, of positioning the IOTA token as a real-world value transfer mechanism between humans and devices in the machine economy.
Moving Forward
With our Crypto Ratings Council rating, we believe the US market and CRC’s partner organizations will feel more comfortable and confident engaging with the IOTA token and protocol. We look forward to building deeper relationships with US counterparts who rely on the Crypto Ratings Council framework.
