FTX’s afterlife becomes the strongest argument for the CLARITY Act

FTX, the exchange that became crypto’s most spectacular cautionary tale in 2022, keeps finding ways to stay relevant. The FTX Recovery Trust is preparing to distribute approximately $900 million to creditors on July 31, 2026, the latest in a series of payouts that have exceeded most expectations. Meanwhile, an updated text of the Digital Asset Market Clarity Act, better known as the CLARITY Act, landed in the Senate on July 22, 2026. From rubble to recovery FTX Trading Ltd. and its affiliated debtors officially emerged from Chapter 11 bankruptcy on January 3, 2025. The reorganization plan, confirmed by the court in October 2024, valued recoverable assets between $14 billion and $16 billion. The plan promised more than 100% recovery for many non-governmental creditors, a rarity in any bankruptcy proceeding and essentially unheard of in crypto. The CLARITY Act takes shape First introduced on May 29, 2025, the bipartisan CLARITY Act aims to build the regulatory infrastructure that was conspicuously absent when Sam Bankman-Fried’s empire imploded. The bill tackles custody rules, disclosure requirements, and market practices. The updated Senate text released on July 22, 2026, sharpens s...