Most mainstream exchanges form "Cryptocurrency Rating Council," with Binance excluded.

Mainstream exchanges such as Coinbase, Bittrex, and Kraken have announced the establishment of the Crypto Rating Council, aiming to assist cryptocurrency projects in listing and trading while complying with U.S. federal securities laws.

Due to the current regulatory uncertainty surrounding cryptocurrencies in the United States, Coinbase has led the formation of the Crypto Rating Council, a collaboration among many mainstream U.S. exchanges to address listing and regulatory issues for crypto projects.

Crypto Rating Council

The Crypto Rating Council will jointly create a scalable rating system to assess whether a cryptocurrency meets securities standards, drawing from SEC guidance and existing regulations.

Founding members include Anchorage, Bittrex, Circle, DRW Cumberland, Genesis, Grayscale Investments, and Kraken, as well as major exchanges and cryptocurrency-related investment funds. Coinbase stated in their blog:

This initiative will enable projects to list more quickly, our ratings framework will focus on objective, fact-based questions, and will be analyzed by technical experts spanning various asset classes.

According to reports from BeInCrypto, the ratings will range from 1 to 5. A "Level 1" rating indicates that a cryptocurrency exhibits few, if any, characteristics consistent with traditional securities, with Bitcoin falling under Level 1. A "Level 5" rating signifies that the asset possesses many characteristics of a security.

Binance Excluded

Notably absent from the founding members of the Crypto Rating Council is Binance exchange. It is understood that Binance US, the fiat-to-crypto exchange of Binance, officially launched on September 24th.

This exclusion may be due to competitive relationships between the council members and Binance. For example, Coinbase is a well-known competitor, planning to launch its own IEO platform after the success of Binance's IEO projects, and listing many tokens.

It is reported that the ratings from the Crypto Rating Council will be conducted independently. Without intervention from the SEC, CFTC, or any government agency, and without the endorsement of any regulatory body, development team, or other third parties, to ensure fairness and impartiality.

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