Coinbase, Kraken to create cryptocurrency rating system

Cryptocurrurrency exchange operators including Coinbase, Kraken and Circle have teamed up to create a system that rates digital tokens on how close they are to securities.

The points-based rating system, unveiled by Coinbase in a blog post Monday, determines whether a digital asset falls under U.S. securities law using guidance from the Securities and Exchange Commission.

“The result of the analysis is a score which makes it easy for members to synthesize the analysis across many tokens and make their own, independent business decisions about whether or how to support an asset,” Coinbase said in the blog post.

The framework was established by a newly formed organization set up by the firms, called the Crypto Rating Council. It’s aimed at helping financial services companies that are looking to add support for certain cryptocurrencies but are uncertain of their…