Hyperliquid Policy Center and venture capital firm Paradigm have called on the U.S. Treasury Department to amend proposed anti-money laundering regulations. The rules, introduced by FinCEN and OFAC in April, would classify stablecoin issuers as financial institutions, holding them strictly liable for transactions they cannot monitor. In a joint letter, Hyperliquid and Paradigm supported the focus on primary markets but advocated for a more lenient approach in secondary markets, where issuers only see wallet addresses and transaction amounts. They warned that the current proposal could push regulated stablecoins out of DeFi, favoring unregulated alternatives. The firms suggest narrowing the definition of activities related to payment stablecoins and revisiting OFAC's stance on smart contract interactions.