The Litecoin community is celebrating after the U.S. Commodities and Futures Trading Commission (CFTC) classified Litecoin as a commodity defined under Section 1a(9) of the Act, 7 U.S.C., in its lawsuit against Binance. The move has set the stage for a rally ahead of August's halving.
According to reports, the LTC price has witnessed strong gains backed by strong whale activity this month of March. With this latest development from CFTC, investors are confident that Litecoin will continue to surge and hit new highs before the halving event.
The decision by CFTC was announced on Monday, March 27th when it filed a lawsuit against Binance. This news came as a surprise to many within the cryptocurrency community who were not expecting such an announcement at this time.
Litecoin's classification as a commodity is significant because it gives clarity to investors regarding how they can trade and invest in Litecoin. It also provides legal protection for those who hold or use Litecoins.
Commenting on this development, Charlie Lee, founder of Litecoin said:
"This is great news for our community! We are excited about what lies ahead for Litecoin."
Litecoin enthusiasts believe that with legal recognition from regulatory bodies like CFTC, more people will be drawn towards investing in cryptocurrencies like LTC.
Despite concerns over market volatility due to COVID-19 pandemic and other factors affecting traditional markets around the world, experts predict that cryptocurrencies like Bitcoin and Litecoin could still outperform conventional investment options especially during these times where economic uncertainty prevails.
As we approach August's halving event which historically leads to surges in cryptocurrency prices due to reduced supply rates, it remains to be seen how much higher LTC can climb but many remain optimistic about its future prospects.