Senators Introduce the PROOF Act to Require Proof-of-Reserves for Digital Exchanges

Senators Thom Tillis and John Hickenlooper have introduced the PROOF Act, a bill aimed at preventing another FTX-type collapse by establishing safeguards and requiring monthly proof-of-reserves reports from auditing firms. The bill also sets baseline account standards for digital exchanges and includes civil penalties for non-compliance. While it remains uncertain if the bill will pass, proponents believe that proof-of-reserves can provide much-needed transparency and oversight for the crypto industry.