PANews reported on June 10 that, according to The Block, the Hyperliquid Policy Center (HPC) and venture capital firm Paradigm jointly wrote to the U.S. Treasury Department requesting amendments to a proposed anti-money laundering rule. This rule, jointly proposed in April by the Treasury Department's Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC), aims to treat stablecoin issuers as financial institutions and require them to bear strict liability for transactions they cannot effectively monitor.

In their letter, HPC and Paradigm expressed their support for FinCEN's focus on primary markets, specifically the issuer-know-the-customer stage; however, in secondary markets, where issuers only see wallet addresses and transaction amounts, a more lenient approach should be adopted. They argue that extending issuer responsibility to secondary market activities conducted via smart contracts would lead issuers to only deploy stablecoins in permissioned environments, causing regulated stablecoins to exit DeFi and be filled by unregulated offshore non-USD alternatives. HPC and Paradigm recommend narrowing the definition of "activity related to payment stablecoins" and reconsidering OFAC's handling of smart contract interactions.