Litecoin confirmed as commodity, according to new classification by CFTC. Though there is a regulatory gloom over the digital currency ecosystem today, Litecoin (LTC) seems unperturbed by what the future holds in this regard, per its current classification by the United States Commodity Futures Trading Commission (CFTC).
As detailed in the lawsuit by the regulator against Binance exchange, Litecoin was listed alongside other top digital currencies like Bitcoin (BTC), Ethereum (ETH), as well as Tether (USDT) and Binance USD (BUSD) as commodities.
Certain digital assets, including LTC as alleged herein, are “commodities,” As defined under Section 1a(9) of the Act, 7 U.S.C. § 1a(9.
Litecoin is a Commodity. Nice to know we all agree on that now. pic.twitter.com/l1D0TDDnxK
— Litecoin (@litecoin) March 27, 2023
The clarity provided is exciting for the community as American regulators have constantly been cracking down on companies in the Virtual Asset service space for issues related to the status of the assets they support.
Litecoin’s price trailed the bigger industry slump over the past 24 hours by dropping 4.31% of its price to $87.44. Unlike many assets in its league, Litecoin is maintaining a very promising price resilience when the week-to-date growth is highlighted. The digital currency is up by 10.37% within this time frame.
The status of Litecoin has not been under dispute as much as many other digital currencies, especially Ethereum. While the SEC has recently tagged Ethereum as a security, getting a new nod from the CFTC is considered a very promising one for the Litecoin community.
Undeterred halving sentiment
According to many commenters in the Litecoin community, clarity on the status of the digital currency offered by the CFTC will give an additional boost concerning the forthcoming halving event, which is less than 130 days away.
With certainty about the regulatory future of Litecoin, the digital currency can follow its defined growth curve ahead of the halving event and even progress on a steady upshoot afterward. With the CFTC naming Litecoin as a commodity, new bullish sentiment is now engulfing the community, which may help propel additional stacking of the cryptocurrency in the short to midterm.