Paradigm, a prominent blockchain investment firm, has called on the U.S. Treasury to implement the GENIUS Act as originally written by Congress. The firm cautioned against any reinterpretation or expansion of the law, particularly concerning the ability of stablecoin issuer affiliates to pay yields to holders. Paradigm highlighted that Congress has already clarified that while issuers themselves cannot pay interest directly, their affiliates are permitted to do so.
Additionally, Paradigm advocated for payment stablecoins to be recognized as secure cash equivalents, citing their 1:1 backing. Justin Slaughter, Paradigm’s head of regulatory affairs, remarked that the Treasury’s Advance Notice of Proposed Rulemaking (ANPRM) is merely the initial phase in a lengthy regulatory process and expressed concerns about potential overreach.
Paradigm Urges U.S. Treasury to Adhere to GENIUS Act Provisions
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