Yes

>>Hyperliquid Policy Center Issues Major Warning Regarding Treasury's Stablecoin Proposal, Detailing the Concerns.

Hyperliquid Policy Center Issues Major Warning Regarding Treasury's Stablecoin Proposal, Detailing the Concerns.

crypthub

6/9/2026, 10:40:36 PM

Compliance Focus and Secondary Markets

The Hyperliquid Policy Center and Paradigm urged refinements to proposed stablecoin compliance rules. The goal of the rules is implementing anti-money laundering and sanctions for permitted payment stablecoin issuers. They argue that due diligence should focus primarily on initial on-ramps and off-ramps. Requiring constant monitoring of secondary market transactions is viewed as unnecessary and overly burdensome.

Limited Scope of Due Diligence

The firms drew comparisons to traditional banking for their arguments. They contend that regulators should only require KYC when funds enter or exit the regulated system. Implementing deep monitoring for every peer-to-peer transaction creates risks. This process could generate excessive, false-positive suspicious activity reports, imposing unnecessary costs on industry participants.

Clarifying "Lawful Orders" Obligations

A major concern involves the broad definition of "lawful order" within the proposed rule. As drafted, the rule might unintentionally encompass developers of decentralized protocols and self-custodial interfaces. This scope could contradict Congress's intent by capturing technologies excluded from the GENIUS Act.

Protecting U.S. Validator Interests

Failing to clarify these definitions could impose compliance obligations on validators of major networks. This broad application threatens to undermine U.S. interests in blockchain development. Such an outcome could cause validator stakes and blockbuilding operations to move offshore, diminishing U.S. market share.