S. 1405 · Where this bill is now
In committee
Introduced in the Senate, Apr 10, 2025
What this bill does
In plain words · AI-written from the official summaryDigital exchanges must protect customer funds
This bill makes digital exchanges—platforms where people trade cryptocurrencies and similar assets—keep customer money separate and safe. The exchanges have to prove to independent auditors that they actually have the funds they claim to have, and the Treasury Department will share those proofs publicly so everyone can see them.
How it affects you
If you use a digital exchange to buy or trade cryptocurrency, this affects you directly. Your assets would be kept separate from the exchange's own money and couldn't be used to cover other people's trades or losses. You'd also get faster access to your money when you want it, and you could see proof that the exchange really has what it says it does.
Read the official summary (Introduced in Senate, Apr 10, 2025)
Proving Reserves Of Others’ Funds Act or the PROOF Act
This bill requires digital exchanges to protect customer funds and provide proof of reserves.
Specifically, digital exchanges must minimize (1) customer risk of asset loss, and (2) delays experienced by a customer when accessing assets. With some exceptions, a customer’s assets must be separated from any other assets and may not be used to margin, secure, or guarantee a trade or account of a person other than the customer.
Further, digital exchanges and digital custodians must report on their proof of reserves through an attestation from an independent auditing firm or a disinterested third party. The Office of Domestic Finance in the Department of the Treasury must make these attestations publicly available.
The bill also provides for the creation of an industry standard for the attestations.
Violations are subject to civil penalties.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 1405
A BILL
PROOF Act
Sponsor: Sen. Thomas Tillis (R-NC) · Introduced Apr 10, 2025 · Finance and Financial Sector · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Apr 10, 2025: “Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.”