Hyperliquid Policy Center and Paradigm urged the U.S. Treasury to revise a proposed anti-money-laundering rule linked to the GENIUS Act.
The joint letter warns the current draft could effectively ban U.S.-regulated stablecoins from decentralized finance (DeFi) by January 2027.
Hyperliquid’s native token, HYPE, declined approximately 11% following the public release of the letter.
This development introduces significant regulatory risks for the company and the broader DeFi ecosystem.