Hyperliquid and Paradigm Push Back on GENIUS Act's Anti-Money Laundering Rule — Here's What They Want Changed

WHY IT MATTERS

Imagine the government wants to require every road in the country to have a toll booth to track who's driving. That works fine for highways managed by a company, but what about a public trail that nobody owns? That's essentially the problem here. The GENIUS Act is a proposed law to regulate stablecoins (digital dollars), but one of its rules about preventing money laundering may not work well for 'decentralized' crypto platforms — ones that run automatically without a company in charge. Hyperliquid and Paradigm are asking lawmakers to adjust the rule so it doesn't accidentally make these platforms illegal or force them to fundamentally change how they work. For everyday crypto users, this matters because it could determine whether innovative DeFi (decentralized finance) tools remain available in the U.S.