Litecoin drops to nine-month nadir amid crypto selloff

Litecoin fell nearly two percent, or over $1 on Wednesday to November 28, 2017 lows amid an extended selloff wave that continues to sporadically hammer cryptocurrencies. 

Litecoin fell 1.76% to $66.10 as of 06:05 GMT, after marking a nine-month trough at $65.10, with a session-high at $67.481. 

Reports came out last week that the U.S. Securities and Exchange Commission is intensifying its scrutiny of brokerages that deal in cryptocurrencies as the top US regulator seeks to get a better grasp on the growing business, with many crypto companies reporting a continuous stream of questions and contacts from the SEC in the past few weeks. 

In another worrying sign, the SEC once again rejected an application for a Bitcoin exchange-traded fund by Tyler and Cameron Winklevoss after a first rejection in March 2017, triggering concerns about regulatory crackdown on the constantly-beleaguered business. 

In other news, and in an effort to alleviate some of the concerns and prevent hefty losses for small investors, the Japan Virtual Currency Exchange Association (JVCEA) is obligating its member exchanges to put a cap on the activities of its participants. 

The self regulatory body wants to preempt potential proposals by the government by seeking to protect investors with small assets and avoid devastating losses for new or inexperienced traders.

The JVCEA is reportedly meeting with the Financial Services Agency (FSA) in Japan to get official approval for these policies in addition to recognition of its status as a self-regulatory organization.

The Path of Litecoin 

Litecoin was first publicly offered in the first half of 2013 at only $3, marking record lows at below $1 in early 2015 before taking off on its long journey higher. 

The cryptocurrency pierced $100 for the first time on November 29, 2017, before scaling a record high at $370.78 on December 19, and plummeting back below $100 on June 12, moving on to $72.503 on June 29.