Crypto Lobby Presses US to Revise Anti-Money Laundering Rule Threatening Stablecoin Flow

US anti-money laundering rule under fire

The Hyperliquid‑backed coalition and venture firm Paradigm have filed a joint brief urging the Treasury to reconsider the proposed anti-money laundering rule that could curtail decentralized stablecoin transactions on public blockchains. Their analysis cites a ↑ 12% rise in cross‑chain stablecoin volume over the past quarter, arguing that the rule’s blanket coverage would impede liquidity and stifle innovation.

“Restrictive AML thresholds risk pushing activity into opaque channels,” the brief states.

Critics from the Financial Crimes Enforcement Network warn that the same growth could mask illicit flows, noting a ↓ 5% dip in compliance reporting accuracy since the rule’s draft release. The debate echoes broader regulatory friction seen after the pandemic, when many jurisdictions tightened oversight. For context, see Reuters coverage of the Treasury’s consultation process.

Reported by: Chloe Winters

Venture Capital & Innovation Reporter