What I dont uderstands is, how can we know which tests will demonstrate the solvency of a centralized crypto exchange? Who is to say that funds cannot be shifted at any time, like SBF did from FTX to Alameda?
Financial report can tell the solvency of those exchanges especially if they are going to declare it properly, and aside from this we can only know they are financially stable when they already experienced problem. Theres no assurance though that they will not use our money to other things, theres no other way to stop them from doing this aside from the government intervention.