Major cryptocurrency exchanges formed the Crypto Ratings Council to rate digital assets on a scale of 1-5 based on securities likelihood. Stellar scored 3.75, indicating moderate securities risk, while Bitcoin scored 1 (lowest risk) and XRP scored 4 (highest risk).
Coinbase, Kraken, Poloniex, and Bittrex established the Crypto Ratings Council to systematically rate cryptocurrencies on their likelihood of being classified as securities under U.S. law. The council uses a 1-5 scale, with 5 indicating a token is a security. Stellar received a 3.75 rating alongside EOS and Tezos, while Bitcoin, Litecoin, Monero, and Dai scored 1. The ratings are based on legal and technical analysis by outside experts and member firms. Token issuers cannot influence ratings upfront but can dispute scores. The exchanges hope the SEC views this as a positive compliance step.