Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
This bill requires digital exchanges and digital custodians to implement baseline accounting standards, segregate customer assets, and obtain monthly independent attestations proving customer reserves. Auditors must provide cryptographic proof of possession, reserves, and liabilities to the Treasury Department’s Office of Domestic Finance, which will publish reports and may impose civil penalties for noncompliance.
Consumer protection emphasis versus regulatory burden concerns
Relative to its intended legislative type, this bill is a substantive regulatory statute that establishes defined duties (asset segregation, monthly attestations, reporting) and enforcement tools (civil penalties, public naming, appeals) for digital exchanges and custodians.
This bill requires digital exchanges and digital custodians to implement baseline accounting standards, segregate customer assets, and obtain monthly independent attestations proving customer reserves.
Auditors must provide cryptographic proof of possession, reserves, and liabilities to the Treasury Department’s Office of Domestic Finance, which will publish reports and may impose civil penalties for noncompliance.
The PCAOB and AICPA must coordinate an industry standard and advisory committee to create the attestation standard; the rule takes effect once that standard is jointly approved.
Moderately likely: focused, administrable consumer-protection design helps, but industry opposition, jurisdictional overlaps, and Senate procedure lower odds.
Relative to its intended legislative type, this bill is a substantive regulatory statute that establishes defined duties (asset segregation, monthly attestations, reporting) and enforcement tools (civil penalties, public naming, appeals) for digital exchanges and custodians. It specifies actors, timelines for standard-setting, and the technical elements required in attestations, but relies on a future jointly approved industry standard and leaves several operational details and funding responsibilities unspecified.
Consumer protection emphasis versus regulatory burden concerns
These are examples from the analysis, not a ranked list of the most-affected groups.
Consumer protection emphasis versus regulatory burden concerns
Likely supportive of stronger consumer protections and transparency for customer funds held by crypto exchanges.
May press for stricter custody rules, fewer exceptions, and robust enforcement to prevent fraud and asset loss.
Will view PCAOB/AICPA standard-setting positively but worry about industry influence and the margin/substitution carve-outs.
Generally favorable as a pragmatic step to protect customers and promote market stability, using established accounting bodies for standards.
Concerned about implementation timing, compliance costs, and clarity on technical proofs and enforcement.
Likely to support with monitoring and potential phased adjustments.
Skeptical of added federal regulatory burdens on digital asset firms and monthly auditing mandates.
Views public naming and Treasury enforcement as federal overreach that may stifle innovation and raise compliance costs.
Might accept lighter disclosure or private-sector led solutions instead.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Moderately likely: focused, administrable consumer-protection design helps, but industry opposition, jurisdictional overlaps, and Senate procedure lower odds.
The bill has not accumulated any surfaced votes yet.
Consumer protection emphasis versus regulatory burden concerns
Moderately likely: focused, administrable consumer-protection design helps, but industry opposition, jurisdictional overlaps, and Senate pr…
Relative to its intended legislative type, this bill is a substantive regulatory statute that establishes defined duties (asset segregation, monthly attestations, reporting) and enforcement tools (civil penalties, publi…
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