The bankrupt FTX exchange’s repayment of around $16 billion stands out as a significant development for the crypto market. Many experts say that the return of this large amount to the system could trigger a strong uptrend among leading cryptocurrencies. However, it is stated that there are still some obstacles, such as the SEC’s recent objections to FTX’s proposed repayment strategy.

FTX Refund Process and Effects
FTX could mark a significant turning point for the cryptocurrency market when it begins its highly anticipated refund process next week. These refunds are expected to have major implications, especially since $16 billion will be returned to investors. Analysts predict that the influx of these funds could create significant buying pressure on Bitcoin and altcoins. The refunds could present new opportunities for investors who missed out on the August market correction. The process comes after a difficult period with the negative actions of former FTX CEO Sam Bankman-Fried. The exchange’s restructuring plan aims to provide full refunds in accordance with the established schedule, and will be submitted for approval at “omnibus hearings” on October 22, November 20, and December 12, 2024. If the Delaware District Court approves the Chapter 11 plan before October 7, payments could begin by the end of the year. However, creditors who fail to file by September 29, 2023 will not be eligible for compensation.

Market Expectations and Possible Bull Market
The crypto community is excited about the potential of this $16 billion fund to kickstart one of the biggest bull runs in market history. The funds from FTX redemptions are expected to flow back into the crypto market and generate significant gains. Major cryptocurrencies like Bitcoin and Solana are said to benefit the most from this, offering significant growth opportunities as the year approaches its final months. Earlier this year, Sunil Kavuri, representing creditors, argued that repayments should be made in cryptocurrencies rather than the dollar equivalent at the time of the bankruptcy. This dispute adds complexity to the redemption process.

SEC Objections and Results
The SEC has added uncertainty to the process by bringing objections that could disrupt the repayment plan. The SEC’s objections to the use of stablecoins in creditor payments complicate the legal picture. Coinbase CLO Paul Grewal criticized the SEC for creating regulatory uncertainty. In an Aug. 30 filing, he said that while stablecoins are not explicitly prohibited from being used in payments, they could have significant legal implications due to the nature of crypto assets.