PROOF Act

This bill, known as the PROOF Act, establishes requirements for digital exchanges and custodians regarding customer asset protection and transparency. It mandates that these entities implement accounting standards, segregate customer funds, and obtain monthly attestations of proof of reserves and liabilities from independent auditors. The bill also defines "digital commodity" and "investment contract," clarifying that certain digital assets, including those from decentralized autonomous organizations (DAOs), are not automatically considered investment contracts. Enforcement is handled by the Treasury's Office of Domestic Finance, with civil penalties for non-compliance.