Two US senators once again propose the establishment of regulatory standards to prohibit digital asset custodians from mixing customer and institutional funds

According to Cryptoslate, US Senators Thom Tillis (Republican of North Carolina) and John Hickenlooper (Democratic of Colorado) have reintroduced a legislative measure to prevent digital asset custodians from mixing customer funds with institutional or proprietary capital. The bill is known as the Proof of Other People's Funds Reserve Act (PROOF), which also requires monthly third-party checks on custodial reserves, based on standards already informally used in the digital asset field. The PROOF Act was initially introduced in 2023 to address the systemic failures exposed by the collapse of the cryptocurrency exchange FTX.