FTX's derivatives wing withdrew a proposed plan to directly settle crypto derivatives products from the Commodity Futures Trading Commission (CFTC) on Friday, Bloomberg reported citing a person familiar with the matter.

The proposal was under review by the Commodity Futures Trading Commission (CFTC), which oversees derivatives products in the U.S. CFTC Chair Rostin Behnam, while not endorsing the plan directly, nonetheless called it "unique" earlier this year. "I think this is potential – and I emphasize the 'potential' – another phase in the evolution of market structure, innovation, and disruption," he said at the Financial Markets Quality Conference last month.