Crypto Rating Council Rates Litecoin With 1: LTC Not A Security

The Crypto Rating Council which was formed just a while ago released the first batch of the 20 digital asset ratings. According to the latest crypto news we can see that the council declared Litecoin is not a security and we are about to read further in the text below.

The Crypto Rating Council consists of 8 large companies including Kraken, Bittrex, Coinbase, Greyscale, Circle, Genesis, Cumberland and Anchorage. The group was founded due to their shared idea and commitment to improving the growth and maturation of crypto markets and the related financial infrastructure and trading services:

‘’We formed the Crypto Rating Council to create a framework to consistently and objectively assess whether any given crypto asset has characteristics that make it more or less likely to be classified as a security under the U.S. federal securities laws.’’

The assets were ranked from 1-5 with 1 being defined as an asset that has few or no characteristics of a security and 5 as an asset which has many characteristics strongly consistent as securities. The CRC was clear that its verdict is not definitive in nature and has not received the endorsement from the Securities and Exchange Commission or any other government body. According to their website, we can read that:

‘’The CRC’s analytical framework is based on relevant law and statements from SEC Staff relating to digital assets, including the SEC’s Framework for Investment Contract of Digital Assets. Neither the scores nor our framework constitutes an exhaustive treatment of the legal and regulatory issues relevant to conducting an analysis of whether a product is a security.
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The CRC found that Litecoin, Bitcoin and Monero are not securities and achieved a score of 1. This is something that many of the users have already suspected. The council’s notes attached to these assets explained the absence of any token sale as well as decentralized development and usage. The Securities usually represent the ownership position in a company or corporation which is something that comes with a whole host of further regulations that should protect the investors as we found out in the Litecoin news. If the SEC agrees with the CRC, a lot of other projects will see a risk having committed securities fraud.