Crypto Rating Council says XRP and Stellar are more like securities

XRP and Stellar stand out as potential securities under U.S. regulations according to the newly created industry association, the Crypto Rating Council.

A group of the most prominent U.S. companies in the crypto industry announced the creation of the Crypto Rating Council.

Among the 20 digitals assets initially rated, XRP and Stellar stand out, adding to questions around their already contested securities status.

The filing also claims that the payment processor company broke a number of laws in the state of California by reportedly "Blurring differences between Ripple's enterprise solutions and XRP to further drive demand," and "Paying exchanges to list XRP, limiting the supply of XRP to drive demand."

Although Ripple's CEO Brad Garlinghouse has limited himself from commenting on the complaint, he publicly maintains that the SEC's guidance cannot be considered "Law, rule, or regulation." Garlinghouse believes that XRP is not a security and could be better classified as a hybrid between an exchange and utility token, as the U.K. Financial Conduct Authority stated in a recent publication.

XRP recently reached price levels that have not been seen since 2017, moving below $0.22.

Stellar Lummes also scored high marks on the Crypto Rating Council scale.

Until the SEC makes a decision on Stellar that uncertainty will, like XRP, manifest itself in the price.

Like XRP, Stellar made a lower low hitting nearly $0.047.

Kin's price also dropped after the Commission sued messaging app Kik over their 2017 ICO. The scores assigned to XRP and Stellar certainly raise additional concerns among investors about their classifications.