The Litecoin community is rejoicing after the U.S. Commodities and Futures Trading Commission (CFTC) officially classified Litecoin as a commodity under Section 1a(9) of the Act, 7 U.S.C. The announcement comes amidst strong gains by the cryptocurrency ahead of its halving scheduled for August.
Additionally, it was revealed that Binance, one of the largest cryptocurrency exchanges in the world, is currently facing a lawsuit from CFTC. However, this has not deterred investors from expressing their confidence in Litecoin.
In recent weeks, there has been significant whale activity driving up demand for LTC. This has resulted in an uptick in prices as more investors flock to purchase before the halving event which will see miner rewards cut down by half.
Litecoin's designation as a commodity offers reassurance to traders and investors who have previously expressed concerns over regulatory uncertainty surrounding cryptocurrencies. This move also solidifies Litecoin's position alongside other established commodities such as gold and oil.
The news has undoubtedly created optimism within the crypto market with many speculating that this could potentially fuel further growth for not only Litecoin but other cryptocurrencies too.
As we approach August, all eyes are now on how Litecoin will perform post-halving given that historically price surges tend to follow these events.