Coinbase to Help Determine Whether Coin is Security

The system, which is developed together with Kraken, Circle and Bittrex, will help exchanges to determinate whether a coin is a security under US law
01 October 2019   717

Bitcoin exchange operators, including Coinbase, Kraken, Circle and Bittrex, have developed a system to evaluate which cryptocurrencies are classified as securities under US law.

According to the Wall Street Journal, the system will help exchanges decide which digital assets to list and which ones to not deal with so as not to violate the requirements of securities laws.

A specially created Cryptocurrency Rating Council evaluates digital assets based on the rules and recommendations of the US Securities and Exchange Commission (SEC). Cryptocurrency project developers do not participate in asset valuation, but may provide additional information.

The rating structure assigns from 1 to 5 points to the asset in question. The highest value indicates that cryptocurrency has the maximum number of signs of a security.

The Council published the results of an assessment of 20 cryptocurrencies. Bitcoin, Litecoin (LTC), Monero (XMR) and DAI each received 1 point, which indicates the minimum probability of classifying them as securities. The same applies to Ethereum (ETH) - only 2 points.

Ripple's XRP was at risk with 4 points. Closer to this value, the ratings of tokens EOS, FOAM, Stellar (XLM), Tezos (XTZ), Augur (REP), Hedera Hashgraph (HBAR) and LOOM from Loom Network - 3.75 points.

The system itself selects digital assets for valuation, but may consider the application.

In addition to exchange operators, the founders of the Cryptocurrency Rating Council were custodial and trading companies of the industry, including Anchorage, a division of Cumberland holding DRW, Genesis Global Trading and Grayscale Investments.

ICE to Acquire Bridge2 Solutions for Bakkt

Bridge2 Solutions will be transferred to the management of the Bakkt trading platform to help them with the app development
06 February 2020   229

The Intercontinental Exchange (ICE) holding announced its readiness to redeem Bridge2 Solutions, the developer of loyalty programs for sellers and buyers, to expedite the release of the Bakkt application.

According to ICE, after the transaction, Bridge2 Solutions will be transferred to the management of the Bakkt trading platform, a subsidiary of ICE. To this end, Bakkt will use the funds raised in the B-series financing round.

Bridge2 Solutions collaborates with leading global brands and large financial institutions, developing loyalty programs for their customers, as well as incentive programs for employees. By taking advantage of Bridge2 Solutions' ties with various companies, the Bakkt platform will accelerate the development of its custom application, with which investors can pay for purchases with cryptocurrencies around the world.

As the chairman and CEO of ICE, Jeffrey Sprecher, emphasized that after the launch of the custodial service Bakkt Warehouse and the first regulated options and futures for bitcoin, the release of this application will be a key stage in the further development of the platform.

With the launch of the Bakkt app, we will, for the first time, offer consumers a robust platform to consolidate and use all of their digital assets, from crypto to loyalty points to in game tokens, in one user-friendly wallet. Combining Bridge2 Solutions’ embedded relationships with banks and merchants and their innovative Loyalty Pay solution will enable us to launch new products that further drive loyalty and empower consumers to trade, transfer and spend digital assets in entirely new ways.

 

Mike Blandina

CEO of Bakkt

ICE management did not disclose the terms of the acquisition of Bridge2 Solutions, but clarified that such a transaction would not have a significant impact on ICE’s net profit or ROI.