U.S. senators introduce reserve certification bill

U.S. Senators Thom Tillis, a North Carolina Republican, and John Hickenlooper, a Colorado Democrat, have introduced a bill, The Proving Reserves of Others Funds (PROOF) Act, which aims to prevent unethical commingling. client funds and requires a monthly Proof of Reserves (PoR) report from a neutral third-party audit firm. The two lawmakers said the bill would establish safeguards to prevent another FTX-type crash. Under the bill, crypto exchanges will have to establish baseline account standards that guarantee customer funds. It will also require verification of cryptographic proof of reserves and proof of the company’s liability. Finally, the bill provides for a range of civil penalties, including fines payable in the event of a crime. . (Decrypt)