; annual verification (a) Mandatory proof of reserves A crypto asset intermediary shall maintain a system, and the requisite policies and procedures, to demonstrate cryptographically verifiable possession or control of all crypto assets under custody or otherwise provided for safekeeping by a customer to the intermediary. A system created under this subsection shall be protected against disclosure of customer data, proprietary intermediary information, and other data which may lead to operational or cybersecurity risk. (b) Regular financial audit An independent public accountant retained by the intermediary shall annual verify possession or control of all crypto assets under custody, or otherwise provided for safekeeping by the intermediary, consistent with subsection (a). This verification shall include an examination of the system and the policies and procedures required by subsection (a) and shall take place pursuant to a written agreement between the intermediary and the accountant, at a time chosen by the accountant without prior notice which is irregular from year to year. (c) Report and material discrepancies Within 120 days of conducting a verification under subsection (b), the independent public accountant retained under subsection (b) shall file a report with the appropriate commission and the applicable customer protection and market integrity authority, stating that the accountant has verified proof of reserves consistent with this section. If material discrepancies in the verification have been found by the independent public accountant, the accountant shall inform the appropriate commission and the customer protection and market integrity authority within 1 day of the conclusion of the verification. (d) Standards The Public Company Accounting Oversight Board shall adopt standards to implement subsections (a) and (b), in consultation with the Securities and Exchange Commission and Commodity Futures Trading Commission. . (b) Technical and conforming amendment The table of sections for chapter 98 of