Bills · S 1405
IN COMMITTEE· 119TH CONGRESS
Senate BillS 1405Finance and Financial Sector
PROOF Act
INTRO APR 10· LAST ACTION APR 10
READING
12MIN
COSPONSORS
1
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it addresses a critical concern in the rapidly growing world of digital assets: the security and transparency of customer funds held by trading platforms. In the past, major digital asset platforms have collapsed due to mismanagement, fraud, or simply not having enough assets to cover customer withdrawals, leading to significant financial losses for everyday investors.
If this bill becomes law, it would create new safeguards by forcing digital exchanges to clearly separate customer money from their own operating funds and to regularly prove, through independent audits, that they actually hold all the customer assets they claim. This could significantly reduce the risk of future platform failures causing customer losses and increase overall trust in the digital asset market. If it doesn't become law, the digital asset market might continue with less stringent oversight, potentially leaving customer funds vulnerable to the same issues that have plagued the industry in recent years.
KEY PROVISIONS
4AI-extractedPROVISION 01
Digital exchanges must keep customer money and digital assets separate from the exchange's own funds.
This prevents exchanges from using customer funds for their own operations or other customers' trades, protecting individual investments.
PROVISION 02
Digital exchanges and custodians must get a monthly audit from an independent firm to prove they hold all customer assets they claim to.
This increases transparency and accountability, assuring customers that their funds are actually available.
PROVISION 03
Digital exchanges must establish specific accounting standards and procedures to protect customer assets.
These standards aim to minimize the risk of loss and ensure customers can access their funds without delay.
PROVISION 04
The Under Secretary of the Treasury can impose civil financial penalties on digital exchanges that violate these rules.
This provides a mechanism to enforce the new requirements and deter non-compliance.
SPONSORSHIP
1 + 1
R· North Carolina
YRS IN OFFICE
11
BILLS LED
58
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 1 REP 0 IND 0
ACTION TIMELINE
2 EVENTSAPR 10
Introduced in Senate
APR 10
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
BILL INFO
TypeSenate Bill
NumberS 1405
Congress119th
StatusIn Committee
IntroducedApr 10, 2025
Last actionApr 10, 2025
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IN COMMITTEE· 119TH CONGRESS · BANKING, HOUSING, AND URBAN AFFAIRS COMMITTEE · INTRODUCED APR 10, 2025
Senate BillS 1405Finance and Financial Sector
PROOF Act
INTRODUCED APR 10, 2025· LAST ACTION APR 10, 2025
PASSAGE CHANCES
—%
READING
12 min
COSPONSORS
1
COMPLEXITY
Moderate
