Hyperliquid Policy Center and Paradigm Urge U.S. Treasury to Revise Stablecoin AML Rule on Tuesday

According to The Block, Hyperliquid Policy Center and Paradigm jointly issued a letter Tuesday urging the U.S. Treasury to revise a proposed anti-money laundering rule under the GENIUS Act that they argue would impose "strict liability for transactions" stablecoin issuers "cannot meaningfully police." The two organizations oppose extending issuer obligations to secondary market activity via smart contracts, contending this would push U.S.-regulated stablecoins toward permissioned environments and away from decentralized finance. They recommended narrowing the definition of payment stablecoin-related activity and reconsidering OFAC's treatment of smart contract interactions.
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