Once upon an American Senate session (no, not in a chocolate factory), two cunning lawmakers named Thom Tillis and John Hickenlooper cooked up a whimsical plan: the Proving Reserves of Others Funds Act. Imagine Oompa-Loompas scampering around with ledger books—except here, they’re insisting on squeaky-clean accounts! 🏦😏
Their magical concoction, lovingly called the PROOF Act, forbids crypto custodians from blending your precious golden goose eggs with their own cookie jar. And oh, it doesn’t end there: the Act demands monthly reserve audits, so those digital treasure troves better show what they truly hold like a proud peacock. 🦚✨
The original recipe for this measure, first unveiled way back in 2023, calls for third-party inspectors to pop in every month and poke around. These sneaky snoops will confirm if the coin hoard truly matches what the customers are owed—like counting sweets at a candy store to make sure the shopkeeper hasn’t been nibbling extras. 🍭🍬
Armies of inspectors would march these figures straight to the U.S. Treasury Department and plaster them in public view for the entire kingdom to see. Any custodian trying to wriggle out of these costs or skip audits would face fines bigger than a giant peach’s pit. 🍑⚖️
The PROOF Act, first introduced by @SenThomTillis and @SenatorHick in 2023, would ban crypto custodians from co-mingling customer funds and require them to comply with monthly reserve inspections.
The bill is designed to help prevent another FTX situation.
— Eleanor Terrett (@EleanorTerrett) April 11, 2025
Post-FTX bill
You see, this entire hullabaloo sprang from the collapse of FTX, an unfortunate fiasco where customer funds went walkabout and reserves were about as reliable as a chocolate teapot. Naturally, that left many folks with a sour taste. 😖🍫
This PROOF Act aims to shape up the crypto family’s housekeeping by making full reserve checks as mandatory as brushing one’s teeth—no more voluntary half-hearted attempts to show anyone your coins aren’t stuffed under the mattress.
Senator Tillis, wearing his best grin, claims these rules will help everyone sleep soundly at night, banishing shady fund-blending schemes to the realm of naughty goblins. 🏰🔍
Senator Hickenlooper labels it “commonsense” (though some might say that’s a rare commodity indeed), suggesting the new Act will force digital wizards to follow the same rules as real-world bankers. 🪄💼
With whispered chatter that the big wigs in Washington are plotting even more policies to tame the crypto realm, it looks like the PROOF Act is just the opening chapter in a much larger story—so hold on to your coins, dear readers, for this ride may be more thrilling than a journey through a chocolate-laden wonderland! 🍫🚀
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2025-04-11 22:02