Paradigm and Hyperliquid Challenge US Treasury Stablecoin AML Rule Scope on June 10

On June 10, 2026, Paradigm and the Hyperliquid Policy Center filed a joint comment letter with U.S. regulators FinCEN and OFAC, requesting a narrower scope for the stablecoin anti-money laundering rule. The groups urged regulators to limit issuer obligations to primary market activity, where stablecoin issuers mint and redeem tokens directly with customers and retain full visibility into transactions.

They expressed concern that extending AML and suspicious activity reporting duties to secondary markets and decentralized finance could expose issuers to liability for smart contract interactions beyond their technical control. The groups argued this could push regulated dollar-backed stablecoins away from DeFi-compatible environments toward permissioned networks, potentially shifting demand to offshore alternatives.