US SEC may require FTX bankrupt institution to use stablecoin to repay customers

Odaily Odaily News According to a court document on Friday, the U.S. Securities and Exchange Commission (SEC) may have set up obstacles to the confirmation of FTX's bankruptcy plan. The SEC said it may question any distribution of crypto assets to creditors. Earlier this year, the FTX bankruptcy court proposed a plan under which 98% of creditors would recover 118% of their claims in cash within 60 days of court approval. The SEC said that the documents previously filed by the FTX bankruptcy agency defined "cash" as including stablecoins pegged to the US dollar. FTX did define cash as "U.S. legal tender or its equivalent, including stablecoins pegged to the US dollar, bank deposits, checks and other similar items" in an early document filed on August 2. "FTX debtors are exploring different distribution options, including the possible distribution of stablecoins to certain creditors," the SEC said in its document on Friday. "Under federal securities laws, the SEC will not comment on the legality of the transactions outlined in the plan and reserves the right to question transactions involving crypto assets." (Coindesk)