According to the Crypto Rating Council, on a scale from 1 to 5 in order to recognise XRP as a security token, the level would be 4. In other words, it’s almost a security token.
The Wall Street Journal announced that some operators in the cryptocurrency industry, including Coinbase, Kraken, Bittrex and Circle Internet Financial, have developed a system to assess which cryptocurrencies are securities. The goal is to help exchanges decide which cryptocurrencies to list or ignore.
For this reason, they founded the Crypto Rating Council, which has already examined some cryptocurrencies in this regard, reaching some interesting conclusions. The ranking provides that the more a cryptocurrency has the characteristics of a security the higher its level, from a minimum of 1 to a maximum of 5.
Starting from EOS and Stellar (XLM), which far exceed 3, to arrive at Ripple (XRP) which has grade 4. Of those examined only two exceed 4, Maker and Polymath, while none are at level 5.
According to the reports, the token issuers will not have a role in the definition of the rating, although they may provide information to contest the score received.
Kraken’s general counsel, Mary Beth Buchanan, said:
“It’s our hope the SEC will view this as a positive step. It does show the SEC what each exchange is doing to come to a decision”.
In fact, it is up to the SEC to decide which of them should be considered as security in the US, and to date, it has not yet made an official statement about XRP, despite long standing accusations against Ripple.
Now the question is: will the SEC really consider these analyses? And, if it does, will it comment on XRP?