Hyperliquid, Paradigm Respond to US Treasury Stablecoin AML Rule

Hyperliquid Policy Center and Paradigm have jointly submitted a response to the US Treasury Department's proposed AML rule for stablecoin issuers under the GENIUS Act. The letter, obtained by the public, states that the firms broadly support the proposed rule but urge regulators to refine or narrow certain obligations for secondary-market issuers.

According to the statement, the current proposal could create unintended consequences for permissionless blockchain infrastructure and the broader DeFi ecosystem. The signatories argued that secondary-market activities fall outside the issuer's direct control, making compliance impractical for the issuer to monitor effectively.

The response highlights ongoing industry efforts to engage with US regulators on stablecoin oversight, balancing anti-money laundering objectives with the operational realities of decentralized finance.