Crypto investment firm Paradigm and the Hyperliquid Policy Center warned U.S. regulators that proposed stablecoin anti-money laundering rules could push regulated dollar tokens away from permissionless DeFi if issuers are made responsible for secondary market activity. In a letter sent Tuesday to FinCEN and OFAC, the two industry groups challenged a proposed rule implementing the GENIUS Act’s anti-money laundering and sanctions requirements for permitted payment stablecoin issuers.