In brief
Paradigm and the Hyperliquid Policy Center challenged proposed AML and sanctions rules for stablecoin issuers.
The groups warned that treating secondary market activity like issuer activity could push regulated stablecoins away from DeFi.
Broad rules could create confusion for issuers and infrastructure providers, industry observers told Decrypt.
Crypto investment firm Paradigm and the Hyperliquid Policy Center warned U.S. regulators that proposed stablecoin anti-money laundering rules could push regulated dollar tokens away from permissionless DeFi if issuers are made responsible for secondary market activity.In a letter sent Tuesday to FinCEN and OFAC, the two industry groups challenged a proposed rule implementing the GENIUS Act’s anti-money laundering and sanctions requirements for permitted payment stablecoin issuers.
