Introducing the PROOF Act: Safeguarding the Crypto Industry with Transparency and Oversight

The PROOF Act, introduced by Senators Thom Tillis and John Hickenlooper, seeks to address the need for increased transparency and oversight in the crypto industry. The bill aims to prevent another collapse similar to that of FTX by establishing safeguards and implementing monthly proof of reserves reports from auditing firms. In addition, the PROOF Act sets baseline account standards for digital exchanges and includes civil penalties for non-compliance. While the passage of the bill remains uncertain, proponents argue that proof of reserves can provide the much-needed transparency and oversight necessary for the stability and growth of the crypto industry.