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Litecoin has been deemed a commodity according to the CFTC

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Litecoin has been deemed a commodity according to the CFTC

litecoin

By litecoin

2 months ago
2 mins read
Litecoin has been deemed a commodity according to the CFTC

The U.S. Commodity Futures Trading Commission's (CFTC), as part of a lawsuit with cryptocurrency exchance Binance, included language defining 'LTC' as a commodity. ​While the Litecoin community and others have long expressed LTC as such, this is major milestone in the history of the crypto regulatory environment.

​The CFTC recognizes Litecoin as digital commodity, in the following two specific references, one highlighting "commodity transactions involving digital assets that are commodities including bitcoin (BTC), ether (ETH), and litecoin (LTC)" and in another more directly defining the asset pursuant to a section of law.

"Certain digital assets, including BTC, ETH, LTC.. as alleged herein, are “commodities,” As defined under Section 1a(9) of the Act, 7 U.S.C. § 1a(9."

On their website, the CFTC explains it's own 'Oversight of Virtual Currencies': "While its regulatory oversight authority over commodity cash markets is limited, the CFTC maintains general anti-fraud and manipulation enforcement authority over virtual currency cash markets as a commodity in interstate commerce." This is clearly a broader declaration.

Reguatory guidance around the cryptocurrency industry has been notably vague. Mostly based on key figures opinions rather than collective judgement. All in all, there is an entire new industry that has developed from digital currencies and this is a step in the right direction in some respects. However, a cloud now looms over Binance, the largest exchange in crypto. We will have to wait and see how Binance reacts. The Litecoin community exploded today on the news.

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