Hyperliquid, Paradigm Push Back on Treasury's GENIUS Act Money-Laundering Rules
The Hyperliquid Policy Center and Paradigm are jointly urging Treasury to revise the anti-money-laundering provisions embedded in the GENIUS Act, arguing the current framework imposes compliance burdens too heavy for stablecoin issuers to bear. The two firms say the rules, as written, could structurally disadvantage the stablecoin sector before it reaches scale.
Key takeaways
- The Hyperliquid Policy Center and Paradigm have jointly urged Treasury to revise the anti-money-laundering provisions in the GENIUS Act, arguing they impose compliance burdens too heavy for stablecoin issuers.
- Both firms support the principle of anti-money-laundering oversight but argue the rules are miscalibrated, asking more of stablecoin issuers than the actual risk warrants.
- The GENIUS Act is the primary legislative vehicle in Washington for regulating stablecoin issuance and will set the compliance floor for issuing dollar-pegged tokens in the U.S.
- Treasury has not publicly responded to the joint filing.
- The joint submission reflects a pattern of coordinated policy engagement from crypto-native firms as stablecoin legislation moves through Congress.
The Hyperliquid Policy Center and Paradigm are jointly urging Treasury to revise the anti-money-laundering provisions embedded in the GENIUS Act, arguing the current framework imposes compliance burdens too heavy for stablecoin issuers to bear. The two firms say the rules, as written, could structurally disadvantage the stablecoin sector before it reaches scale.
What the Two Firms Are Arguing
The Hyperliquid Policy Center and Paradigm directed their criticism specifically at Treasury's money-laundering requirements as they apply to stablecoin issuers under the GENIUS Act. Their position: the obligations are disproportionately onerous relative to the actual risk profile of stablecoin activity.
Neither organization contested the principle of anti-money-laundering oversight. The argument, rather, is calibration — that the current draft asks more of stablecoin issuers than the underlying threat warrants, and that revisions are needed to make the regime workable.
Why Stablecoin Issuers Are the Focus
The GENIUS Act is the primary legislative vehicle in Washington for regulating stablecoin issuance. How it handles Bank Secrecy Act-style obligations will set the compliance floor for any firm seeking to issue a dollar-pegged token in the U.S. market. Firms like those represented by Paradigm's policy arm have a direct commercial stake in where that floor lands.
The Hyperliquid Policy Center's involvement signals that on-chain trading venues are also watching the legislation closely — stablecoin settlement is the backbone of most decentralized derivatives markets, so rules that constrain issuers ripple quickly into how those platforms operate.
The Broader Lobbying Moment
The joint submission reflects a pattern of coordinated policy engagement from crypto-native firms as stablecoin legislation moves through Congress. Paradigm has been one of the more active venture voices in Washington on digital-asset regulation; pairing with an infrastructure-adjacent policy center broadens the coalition behind the revision request.
Treasury has not publicly responded to the joint filing. Whether the GENIUS Act advances with modified AML language will depend on how receptive legislators are to industry arguments that the current text overcalibrates compliance risk.
Related reading
Filed by the digital assets desk of MarketPR on June 19, 2026. Source: cointelegraph.com. Indicative figures are not investment advice.