The PROOF Act mandates monthly audits for crypto exchanges, preventing consumer funds from being mixed with institutional assets. This proposed legislation, backed by Senators Thom Tillis and John Hickenlooper, aims to establish a benchmark for cryptocurrency regulation to provide stronger consumer protection.
If approved, the PROOF Act could reshape the crypto landscape by increasing transparency and accountability within the industry. Exchanges would need to utilize cryptographic methods to verify reserves, promoting faith in their operations and preventing future crises akin to the FTX incident.
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