The United States Congress passed the Sarbanes-Oxley Act (SOX) to protect shareholders and the general public from accounting errors and fraudulent practices in enterprises, and to improve the accuracy of corporate disclosures. The Sarbanes Oxley Act requires all financial reports to include an Internal Controls Report. This shows that a company's financial data are accurate (within 5% variance) and adequate controls are in place to safeguard financial data. They must also complete and verify that these reports are accurate. Finally, they must submit these reports for evaluation to an independent, third party auditor. To ensure compliance, companies need to establish internal control systems to prevent fraudulent activities, accurately report financial information, and have independent audit committees. Failure to meet these requirements can result in regulatory deficiencies. If a company doesn't have adequate controls to prevent fraudulent activities, it could lead to misappropriation of funds or misrepresentation of financial statements. Similarly, if a company fails to disclose material financial information to the public, it can mislead investors. Crypto exchange FTX has collapsed in spectacular fashion thanks to a complete failure of corporate control. the FTX Group did not maintain centralized control of its cash. Cash management procedural failures included the absence of an accurate list of bank accounts. It is not clear how FTX could operate as a going concern without even being aware of what bank accounts it had. The problem is that FTX had none of these internal controls. Indeed, corporate control was in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals." The hope is that regulators can be fully educated about crypto and decentralized finance. This can involve requiring crypto exchanges to operate within broadly analogous frameworks to traditional brokers. It can require properly audited books and a technically competent senior management team. This can include prohibiting exchanges from using their own coins as collateral, requiring them to separately itemize said coins in their books, forcing proper risk management, prohibiting unauthorized use of customers funds and requiring proof of reserves