Two U.S. senators from opposite sides of the aisle have introduced a bill that they say will establish safeguards against another FTX-type collapse. The Proving Reserves of Others Funds (PROOF) Act, introduced by Sens. Thom Tillis (R-NC) and John Hickenlooper (D-CO) on Friday, intends to guard against unethical co-mingling of customer funds and require a monthly proof-of-reserves (PoR) report from a neutral, third-party auditing firm. The bill requires digital exchanges to establish baseline account standards, verification of cryptographic proof of reserves, and proof of a company’s liabilities, along with a set of civil penalties. Advice from Nic Carter, a partner at Castle Island Ventures and Dennis Porter, founder and CEO of the Satoshi Action Fund, was taken into account when introducing the bill. Elizabeth Warren (D-MA) and a number of other democratic senators are also busy securing the votes for an Anti-Money Laundering Act, while Maxine Waters (D-CA) in the House of Representatives is mostly anti-crypto. However, proof-of-reserves is a broadly sought out public policy that would provide much-needed transparency for the industry. Alex Thorn, head of firmwide research for Galaxy Research, is optimistic that these types of innovations can breed better practices in the future. This bill is good news for the crypto industry as it provides a safety net against another FTX-type collapse. #PROOFAct #CryptoSafety #CongressionalSupport #Transparency
You can read more about this topic here: Decrypt: U.S. Senators Set in Motion Bipartisan Proof-of-Reserves Bill
