Hyperliquid Policy Center and Paradigm urge US Treasury to narrow stablecoin rule

Paradigm, Hyperliquid urge narrower PPSI rule

Paradigm and Hyperliquid filed comments. They challenge parts of Treasury’s rule.

• They sent a joint comment. It targets FinCEN and OFAC. They ask for clearer limits on PPSI duties. Source: HPC and Paradigm joint comment.
• Focus KYC on direct customers. No extra diligence on secondary trades. They cite banking analogies. KYC at on and off-ramps. Source: HPC and Paradigm joint comment.
• They warn of SAR overload. Many low-value, noisy reports. Costs for PPSIs and FinCEN. Little public benefit. Source: HPC and Paradigm joint comment.
• Clarify “lawful order” scope. Exclude protocol devs and wallets. Avoid sweeping in self-custody tech. Source: HPC and Paradigm joint comment.
• Don’t impose duties on validators. That could include Ethereum (ETH) and Solana (SOL). Also L2s and Hyperliquid validators. Source: HPC and Paradigm joint comment.
• They flag onshoring risks. Stakes and blockbuilders may move offshore. US validator share could fall. Source: HPC and Paradigm joint comment.