Litecoin Surges After Regulator Declares It A Commodity

2024-04-01 10:16:21

(MENAFN- Yolo Wire) The price of %Litecoin (CRYPTO: $LTC) has surged 20% and broken above $100 U.S. after the Commodity Futures Trading Commission (CFTC) declared the cryptocurrency a“commodity.”

The commodity designation by the U.S. regulator is significant as it places Litecoin outside the jurisdiction of the Securities and Exchange Commission (SEC), which subjects cryptocurrencies to securities regulations similar to stocks.

The CFTC designation of Litecoin as a commodity resulted from a lawsuit brought against the cryptocurrency that required the regulator to make a ruling on whether it was a security.

Being labeled a commodity makes it less likely that Litecoin will come under the regulatory oversight of the SEC, which has sought to treat crypto the same as stocks.

Currently, Litecoin is trading at $105.17 U.S. per token, having gained more than 25% in the last 30 days.

Litecoin was launched in 2011 and is considered an“altcoin,” which is a cryptocurrency that is based on a copy of Bitcoin's source code.

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