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 U.S. dollar.

FTX did define cash as "U.S. legal tender or its equivalent, including stablecoins pegged to the U.S. dollar, bank deposits, checks, and other similar items" in an earlier document filed on August 2.

“The FTX Debtors are exploring different distribution options, including the potential distribution of stablecoins to certain creditors,” the SEC said in Friday’s filing. “Under the federal securities laws, the SEC will not express an opinion on the legality of the transactions outlined in this plan and reserves the right to challenge transactions involving crypto assets.”