Hyperliquid Policy Center and Paradigm Urge U.S. Treasury to Revise Stablecoin Anti-Money Laundering Rule

According to The Block, Hyperliquid Policy Center (HPC) and venture firm Paradigm sent a joint letter to the U.S. Treasury calling for revisions to a proposed anti-money laundering rule. The rule, jointly announced by the Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC) in April, would designate stablecoin issuers as financial institutions. HPC and Paradigm support compliance obligations in the primary market but oppose extending liability to secondary market activities conducted through smart contracts. They recommend narrowing the definition of "stablecoin-related activities" and reconsidering OFAC's approach to smart contract interactions.
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