Hyperliquid Policy Center and Paradigm Warn on Treasury Stablecoin Proposal
Joint comment urges FinCEN and OFAC to refine AML and sanctions rules for stablecoin issuers.
The Hyperliquid Policy Center (HPC) and venture capital firm Paradigm have submitted a joint comment to the U.S. Treasury, raising concerns about proposed stablecoin compliance rules tied to the GENIUS Act. The comment urges the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC) to refine certain aspects of the rule.
The proposed regulation aims to implement anti-money laundering (AML) and sanctions requirements for so-called “permitted payment stablecoin issuers” (PPSIs). The rule is designed to allow innovation in payment stablecoins while operating under an “appropriately tailored” regulatory framework. However, HPC and Paradigm argue that parts of the rule could be overly broad or burdensome.
- Concerns include potential over-compliance costs that could stifle innovation.
- The comment suggests clearer definitions for PPSIs and their obligations.
- A call for a more risk-based approach to AML and sanctions screening.
The submission is part of a broader public feedback process as the Treasury works to finalize stablecoin regulations under the GENIUS Act. The outcome could shape how dollar-pegged digital assets are issued and monitored in the United States.