The application by FTX to provide its automated margin in the United States is being withdrawn.
A unit of the insolvent cryptocurrency exchange retracted its proposal to offer a cutting-edge framework for derivatives trading. The application might have enabled FTX to act as a clearing agency for derivatives while making direct margin trading possible.
The Commodity Futures Trading Commission (CFTC) gave the plan utmost importance when it convened a discussion in May that featured Sam Bankman-Fried, the CEO of FTX.
Already before FTX collapsed the other week, the concept was found to be contentious. The company, along with a number of its partners, such as the FTX.US division in the United States, filed for bankruptcy on November 11.
A separate bill supported by FTX that seeks to give the Securities and Exchange Commission (CFTC) more authority has emerged as the leading priority for the agency, which would obtain more control of markets cryptocurrency exchanges should it be approved.
The Securities and Exchange Commission (CFTC) and Department of Justice (DoJ) are apparently looking into the abrupt fall of FTX, and the CFTC has stated that it is keeping an eye on the situation.