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Groups urge U.S. Treasury to revise AML rules for stablecoin issuers to limit secondary market liability.

Market News
09 Jun 2026
Blockonomi
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Neutral
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Paradigm and Hyperliquid Policy Center have jointly urged the U.S. Treasury to revise a proposed anti-money laundering (AML) rule that would impose strict liability on stablecoin issuers for transactions in the secondary market, which issuers cannot control. They support FinCEN’s focus on primary market compliance where issuers know their customers but want regulators to narrow the definition of stablecoin payment-related activities and reconsider smart contract liability. The groups warn that broad secondary market obligations could push U.S.-regulated stablecoins out of decentralized finance (DeFi) platforms and favor offshore alternatives. Their recommendations are part of the public comment process before final rules are issued under the GENIUS Act framework.

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