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Litecoin was deemed a commodity at the moment in a CFTC lawsuit submitting in opposition to Binance.
With the altcoin now doubtlessly protected from additional scrutiny from the SEC, a brand new digital silver narrative may 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 at the moment, after it was revealed that Binance and CEO Changpeng Zhao will face authorized motion from america 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 underneath their jurisdiction. The CFTC is in command of regulating commodity futures markets, resembling oil, soy, corn, silver, and gold.
Up to now, 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 Alternate higher often called CME.
However the SEC has just lately muddied the regulatory readability round ETH. LTC hasn’t been underneath 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.
Up to now, durations of financial misery, excessive inflation, or warfare, traders flock to the protection of valuable metals like gold. Treasured steel are commodities with a particularly scarce provide. Attributable to this attribute, silver and gold have been used as cash all through historical past.
The fiat system at the moment exists as a result of gold and silver have been simple to counterfeit, laborious to move, and since governments needed to hold minting new cash as a result of people discovered methods to shave down the metals or decrease the precise steel content material per coin.
At present, 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, may we additionally see a flight to Litecoin and silver? And extra importantly, may 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, despite the fact that altcoins have been struggling to maintain up with Bitcoin. LTC being labeled a commodity formally by the CFTC, mixed with a community rising sooner than even Bitcoin’s is, Litecoin may see a dramatic change in sentiment within the close to and long run.
Bernard Baruch famously mentioned “Present me the charts, and I’ll let you know 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 may trigger it. 👉 https://t.co/ENjGbniu4F
— Tony “The Bull” (@tonythebullBTC) March 27, 2023
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