PROOF Act

Hozzl · 2025-05-09T12:37:41Z

Explore the details of Senate Bill 1405 PROOF Act currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Finance and Financial Sector. Stay informed on legislative developments.

5/9/2025, 12:37 PM

Summary of Bill S 1405

The bill titled "A bill to impose requirements on digital exchanges, and for other purposes," was introduced in the 119th session of Congress as Senate Bill 1405 on April 10, 2025. The bill aims to impose requirements on digital exchanges, though specific provisions and directives outlined within the bill are not provided in the context.

Congressional Summary of S 1405

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.

Read the Full Bill

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Current Status of Bill S 1405

Bill S 1405 is currently in the status of Bill Introduced since April 10, 2025. Bill S 1405 was introduced during Congress 119 and was introduced to the Senate on April 10, 2025. Bill S 1405's most recent activity was Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. as of April 10, 2025