The Hyperliquid Policy Center and crypto investment firm Paradigm are calling on the Treasury Department to revise anti-money-laundering requirements tied to the GENIUS Act, the stablecoin bill advancing through Congress. Both organizations argue the current draft rules place an excessive compliance burden on stablecoin issuers. The pushback marks an early industry pressure campaign against regulatory language that could define how stablecoin businesses are permitted to operate under U.S. law.
What the GENIUS Act Is — and Why the AML Rules Matter
The GENIUS Act — short for Guiding and Establishing National Innovation for U.S. Stablecoins — is Congress's most prominent attempt to create a federal licensing framework for stablecoin issuers. Anti-money-laundering rules are a core component of any such framework: they govern how financial entities must screen customers, monitor transactions, and report suspicious activity to federal authorities. Getting that language wrong, in either direction, carries real consequences. Rules that are too loose invite illicit finance; rules that are too tight can make compliance economically unworkable, particularly for smaller or decentralized issuers.
The Industry Complaint
According to the Hyperliquid Policy Center and Paradigm, Treasury's proposed AML provisions fall on the too-tight end of that spectrum. Their joint position is that the requirements, as drafted, are too onerous for stablecoin issuers to realistically satisfy. Neither organization, as described in the source, specified which provisions they find most burdensome, nor did they publicly quantify the projected compliance cost. What they are asking for is revision — a reworking of the language before it is locked into law.
What to Watch For
The significance here is not just the objection itself but who is raising it. Paradigm is one of the most influential capital allocators in the crypto space, with a history of engaging directly on policy. The Hyperliquid Policy Center, tied to the Hyperliquid trading protocol, represents an on-chain trading platform with a direct stake in how stablecoin infrastructure gets regulated. When firms with that profile weigh in on draft legislative language, congressional staff and Treasury officials typically take notice.
Whether Treasury will revise the rules in response remains to be seen. The GENIUS Act is still moving through the legislative process, meaning the AML provisions are not final. That window is exactly what the Hyperliquid Policy Center and Paradigm appear to be targeting.