Litecoin was deemed a commodity immediately in a CFTC lawsuit submitting in opposition to Binance.
With the altcoin now doubtlessly secure from additional scrutiny from the SEC, a brand new digital silver narrative might take form. Right here’s why.
Litecoin Formally Labeled A Commodity By US CFTC
The crypto market bled greater than $50 billion in market cap immediately, after it was revealed that Binance and CEO Changpeng Zhao will face authorized motion from the USA Commodity Futures Buying and selling Fee “over alleged buying and selling and derivatives guidelines violations.”
In accordance with the submitting, the CFTC has explicitly named Litecoin, together with Bitcoin and Ethereum, to be a commodity beneath their jurisdiction. The CFTC is accountable for regulating commodity futures markets, akin to oil, soy, corn, silver, and gold.
Previously, the CFTC has been clear that Bitcoin is a commodity and has additionally named Ether as such, permitting each to be traded on the Chicago Mercantile Trade higher generally known as CME.
However the SEC has just lately muddied the regulatory readability round ETH. LTC hasn’t been beneath scrutiny by the SEC, nonetheless, making this newest naming of Litecoin to be a commodity particularly notable.
Is Litecoin prepared for a serious rally? | LTCUSD on TradingView.com
Why The Distinction Might Drive A New Digital Silver Narrative
The CFTC calling LTC a commodity comes as a time when there are extra skeptics of crypto than ever earlier than, but the safer, commodity-like BTC has been thriving within the midst of a banking sector disaster.
Previously, durations of financial misery, excessive inflation, or conflict, traders flock to the security of valuable metals like gold. Valuable metallic are commodities with an especially scarce provide. As a result of this attribute, silver and gold have been used as cash all through historical past.
The fiat system immediately exists as a result of gold and silver had been simple to counterfeit, laborious to move, and since governments needed to maintain minting new cash as a result of people discovered methods to shave down the metals or decrease the precise metallic content material per coin.
Right now, Bitcoin is taken into account digital gold, however for no matter motive, the digital silver narrative has been all however useless. However with Litecoin now being labeled a commodity, and with traders fleeing from banks to BTC and gold, might we additionally see a flight to Litecoin and silver? And extra importantly, might this reignite the digital silver narrative that propelled LTC to new highs in 2017?
Litecoin technicals have just lately begun to teeter into bullish territory, regardless that altcoins have been struggling to maintain up with Bitcoin. LTC being labeled a commodity formally by the CFTC, mixed with a community rising quicker than even Bitcoin’s is, Litecoin might see a dramatic change in sentiment within the close to and long run.
Bernard Baruch famously stated “Present me the charts, and I’ll inform you the information.
I’m watching this unfold with #Litecoin proper now. The opposite day, I posted a bullish $LTC chart. I used to be requested what might trigger it. 👉 https://t.co/ENjGbniu4F
— Tony “The Bull” (@tonythebullBTC) March 27, 2023