Paradigm, Hyperliquid Policy Center Challenge GENIUS Act Stablecoin AML Rules on June 9

According to Paradigm and the Hyperliquid Policy Center, the two groups filed comments with FinCEN and OFAC on June 9 challenging proposed anti-money laundering and sanctions rules for stablecoin issuers under the GENIUS Act. The groups warned that treating secondary market activity like issuer activity could push regulated dollar stablecoins away from permissionless decentralized finance. They argued that issuers should not be responsible for stablecoin movement through wallets and DeFi apps outside their direct control, and that applying such broad rules could generate low-value suspicious activity reports without meaningful regulatory benefit.
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