Breaking: Litecoin deemed a digital commodity by CFTC

On March 27th, 2023, in the lawsuit filed by CFTC against Binance, Litecoin was officially recognized as a digital commodity, similar to Bitcoin which has held this status since 2015.

This development is significant because numerous digital securities, including XRP, which is currently under a lawsuit from the SEC, and others, may face the possibility of being de-listed due to potential regulations.

There is no chance that Litecoin would be de-listed after being deemed an official digital commodity by the CFTC from exchanges in the US.

As a digital commodity, Litecoin functions as a medium of exchange, a unit of account, and a store of value without a central issuer, making it interchangeable with other goods of the same type.

The CFTC page on Virtual Currencies even displays a Litecoin logo, further cementing its status as a recognized digital commodity.

Currently, Litecoin has the lowest market cap at $6.4 Billion, meanwhile, Ethereum has a $209 Billion market cap and Bitcoin has $525 Billion. Litecoin has a less than 1% market cap compared to both Bitcoin and Ethereum.

Sources:

1. https://storage.courtlistener.com/recap/gov.uscourts.ilnd.431767/gov.uscourts.ilnd.431767.1.0_1.pdf

2. https://www.cftc.gov/sites/default/files/idc/groups/public/%40customerprotection/documents/file/oceo_aivc0218.pdf

3. https://markets.businessinsider.com/currencies/news/xrp-delisted-ripple-sec-complaint-coinbase-crypto-okcoin-trading-platform-2020-12-1029926814

4. https://www.sec.gov/news/press-release/2020-338