U.S. Senators Thom Tillis and John Hickenlooper have reintroduced the PROOF Act in an effort to bolster transparency within the cryptocurrency industry. The bill, initially proposed in 2023 following the FTX collapse, mandates third-party audits for crypto firms operating under U.S. regulations. This move aims to enhance market stability and foster greater investor confidence. The reintroduction of the PROOF Act is anticipated to increase compliance costs for exchanges, potentially impacting market liquidity, especially for prominent tokens like Bitcoin and Ethereum. While some developers welcome increased transparency, others express concerns about potential centralization. The bill seeks to address regulatory gaps revealed by past crypto collapses, aiming to establish stricter oversight and financial safeguards within the industry.