FTX Collapse Renews Call for the CLARITY Act

When FTX collapsed, the parts of the business that were already following standard financial laws managed to hold up better than the rest. This stark difference is now fueling a push for the CLARITY Act. The goal is to make sure digital assets get the same legal protections that traditional finance has used for years.

Randi Abernethy of Bullish argues that the Senate failure to pass this bill this week missed a big opportunity. She believes the convergence of traditional banking and crypto requires a uniform approach to security. Without these rules, users remain exposed to the kind of risks that destroyed FTX.

Industry experts are watching to see if lawmakers will try again soon. While the crypto market continues to grow, the lack of a clear federal framework remains a major hurdle for stability. Investors should keep an eye on upcoming legislative sessions to see if these custody standards gain any new momentum.