# 119-s-1405: PROOF Act

119-s-1405, PROOF Act, is a 119th Congress bill sponsored by Sen. Tillis, Thomas [R-NC] (R-NC); status introduced; PRIA reads it as touching household money (as of 2026-04-21).

- Canonical: https://policyrisk.com/legislation/119-s-1405
- As of: 2026-04-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-1405
- Congress: 119
- Title: PROOF Act
- Status: introduced
- Introduced: 2025-04-10
- Sponsor: Sen. Tillis, Thomas [R-NC] (R-NC)
- Cosponsors: 1
- Policy area: Finance and Financial Sector
- Touches household money: yes
- Last recorded action: 2026-04-21

## Summary

**Reserve transparency for customer assets**. This bill would create a federal framework requiring digital exchanges and custodians to produce cryptographic-proof attestations that they hold customer assets and to face tiered penalties for failures. - Customers: Retail users would get publicly available reports that verify possession or control of keys and balances using cryptographic proofs like Merkle trees or zero-knowledge proofs. - Exchanges and custodians: Platforms would need an independent attestation within 30 days of the rule taking effect and then monthly attestations, with a disinterested third party allowed if independent auditors are unavailable. - Auditors and regulators: Auditing firms must submit reports to the Treasury Office of Domestic Finance that the Office will publish with entity and auditor names. Civil penalties would range from $0.25 to $0.90 per user or 2.5 to 9 basis points of assets under management, with annual caps at the lesser of $1 per user or 0.1% of assets. Penalties would be publicized and appealable, and waivers are possible if an auditor caused the noncompliance.

## Cosponsors (1)

- Sen. Hickenlooper, John W. [D-CO] (D-CO), 2025-04-10T00:00:00.000Z

## Provisions PRIA read

- New protections for customer assets: benefit, low. If enacted, exchanges would have to hold customer covered assets to reduce loss and speed access. They could not treat those assets as their own or mix them with non-covered funds. Limited exceptions would allow short-term convenience co-mingling with banks or custodians, ordinary withdrawals to pa…
- Fines for missed attestation reports: cost, medium. If enacted, the Under Secretary could fine exchanges that miss attestation or reporting duties. For one failure the fine would be the larger of $0.25 per user or 2.5 basis points of assets under management. For two failures it would be $0.55 per user or 5.5 basis points. For three or more it would…
- Defines digital assets and firms: mixed, medium. This bill would define which digital assets, commodities, wallets, custodians, and exchanges are covered. It would say that "covered assets" exclude an exchange's own funds and margin-account assets. It would say money includes foreign currency and convertible virtual currency. It would also define…
- Monthly proof-of-reserves and reports: mixed, medium. The bill would require each exchange and custodian to get an independent attestation of proof of reserves within 30 days after an industry standard is approved, and then monthly. Auditors must send cryptographic proof reports to the Treasury Under Secretary and those reports would be published with…

## Related bills

- 119-s-4744: Take Care of America’s Veterans Act
- 119-s-1541: SHIPS for America Act of 2025
- 119-s-1748: Kids Online Safety Act
- 119-s-3923: Weather Research and Forecasting Innovation Reauthorization Act of 2026
- 119-s-5025: Lindsey O. Graham Sanctioning Russia Act of 2026
- 119-s-1241: Sanctioning Russia Act of 2025

## Sources
- [119-s-1405 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/1405)

## Related
- [119-s-4744: Take Care of America’s Veterans Act](https://policyrisk.com/legislation/119-s-4744)
- [119-s-1541: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-s-1541)
- [119-s-1748: Kids Online Safety Act](https://policyrisk.com/legislation/119-s-1748)
- [119-s-3923: Weather Research and Forecasting Innovation Reauthorization Act of 2026](https://policyrisk.com/legislation/119-s-3923)
- [119-s-5025: Lindsey O. Graham Sanctioning Russia Act of 2026](https://policyrisk.com/legislation/119-s-5025)
- [119-s-1241: Sanctioning Russia Act of 2025](https://policyrisk.com/legislation/119-s-1241)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-1405 (as of 2026-04-21).