Hyperliquid Policy Center (HPC) and Paradigm jointly send a letter to the U.S. Department of the Treasury, calling for revisions to the anti-money laundering rules proposed by FinCEN and OFAC to implement the GENIUS Act. The two parties support limiting the compliance obligations of stablecoin issuers primarily to the primary market but believe that OFAC's proposal to extend responsibility to secondary market transactions driven by smart contracts could make issuers liable for transactions they cannot practically control, thereby undermining the use of regulated stablecoins in DeFi and open blockchain environments. Both organizations recommend further narrowing the relevant definitions and re-evaluating the regulatory requirements for smart contract interactions. (The Block)

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NonceNina
· 3h ago
HPC’s move this time shows that Hyperliquid isn’t just building products—it’s also actively shaping its authority over the rules, which is a long-term advantage.
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BeGentleWithLeverage
· 3h ago
The original intention of the GENIUS Act was to clear the field, but the draft rules might instead force compliant stablecoins into a dead end—ironic.
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LiquidityLifeguard
· 3h ago
If FinCEN really shifts the issuer responsibility to the smart contract layer, DeFi liquidity will probably have to collectively move offshore.
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0xSideQuest
· 4h ago
Hyperliquid and Paradigm's collaboration is quite strong, directly bringing the compliance boundary issues of the secondary market to the forefront.
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SlippageSkeptic
· 4h ago
The key contradiction lies in — how can issuers control the interactions of on-chain anonymous addresses? Technically impossible, but regulatory authorities insist on it.
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BluePeonyObserver
· 4h ago
Paradigm's consistent style: diplomacy first, force later; the letter is just the first step, and there will likely be a lawsuit budget afterward.
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