Crypto Rating Council Is Out to Help Change US Regulatory Landscape

At the end of September, a number of established crypto firms that are currently operating in the United States came together to establish a new governance body called the Crypto Rating Council so as to jointly provide more clarity on the definition of various cryptocurrencies - that is, establish which digital assets can be classified as securities and those that can not.

Maeszalek told Cointelegraph that in its attempt to bring clarity to this space, the CRC's opaque rating rules could cloud already-murky waters and add to the confusion that has plagued the crypto market for nearly a decade now.

"Regulators have had ample opportunity to be supportive of the industry's efforts to self-regulate over the years, but didn't take it. I don't think regulators in the U.S. will perceive the CRC as a viable means to self-regulation; instead they will view it as a misguided attempt that lacks legitimacy and leaving the industry again in need of regulatory clarity."

Will regulators recognize the CRC?A pertinent question that has been floating around on the internet since the launch of the CRC is whether or not regulatory bodies like the U.S. Securities and Exchange Commission will now alter their own classifications of crypto assets.

"Independent of the CRC and other lobbying groups, the fact of the matter is that the SEC's job is to protect investors and consumers alike. Do I believe new rules and exemptions will come into place overtime? Yes, I do. Do I believe crypto companies will not be subject to reporting requirements, the legal hurdles required for registered offerings and investor accreditation checks? Absolutely not. However, the CRC is a step in the right direction."

On the subject of whether the CRC possesses the required power to bring about any actionable changes within this domain, Sean Keefe, managing partner at crypto investment fund Straight Up Capital, similarly believes that it is still too early to tell what the outcome will be in terms of the CRC achieving its goals.

"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."

How does the crypto industry view the CRC?To assess the impact of the CRC on the crypto market, Cointelegraph reached out to Sukhi Jutla, an IBM blockchain developer and author of three books.

"The SEC should welcome the creation of the CRC as it shows key players in the industry making an effort to create more clarity in this industry. With more clarity, it will make more people more comfortable in using cryptocurrencies which will undoubtedly help local crypto markets to thrive and flourish. People need to feel more confident before they jump into this area and not feel worried they could be penalised."

"It includes some really important metrics that can be applied to an asset that is looking not to be a security, and Bitcoin, Ethereum, and Litecoin serving as really neat examples of already existing evaluations, the system will be pretty hard to argue with. All of us in the crypto community are looking for the same things - crypto being recognized and adopted worldwide. If CRC actually delivers on its job of making it easier for the SEC to make their decisions, it's amazing."