Updated: Mar 27
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.