Tag: congressional

Paradigm Warns Treasury On GENIUS Act Stablecoin Rules

The post Paradigm Warns Treasury On GENIUS Act Stablecocom. Paradigm filed comments warning the U. S. Treasury not to reinterpret the GENIUS Act beyond what Congress passed. The firm says affiliates of stablecoin issuers are allowed to pay yield and Treasury cannot close that channel in rulemaking. Paradigm also asked Treasury to recognize payment stablecoins as secure cash equivalents because of 1: 1 backing. Leading blockchain investment firm, Paradigm submitted a detailed response to the U. S. Treasury’s advance notice on the GENIUS Act and asked regulators to apply the statute exactly as Congress wrote it. Justin Slaughter, Paradigm’s head of regulatory affairs, said the Treasury’s Advance Notice of Proposed Rulemaking, ANPRM, is only the opening move in implementation and warned that later stages often drift away from the law’s text. The firm wants the Treasury to follow congressional intent, not create new limits through guidance. To start with a bit of context, today’s comment is a response to an ADVANCE notice of proposed rulemaking (ANPRM). So this is not even a proposed rule, but the proposal for a proposal. ⁰⁰In other words, we’re at the start of a very long road. Justin Slaughter (@JBSDC) November 6, 2025 Core Dispute: Can Affiliates Pay Yield? At the center of the debate lies a key question whether affiliates of stablecoin issuers can offer interest or yield to holders. Congress has already addressed this issue, allowing affiliates to provide such returns while prohibiting issuers from doing so directly. Paradigm argues that the Treasury has no authority to override this decision or reinterpret the statute. However, the firm also acknowledges that legal clarity alone may not prevent regulatory overreach. History shows that many bipartisan laws undergo significant transformation during implementation, often straying from their original intent. Paradigm emphasizes that this time, such changes would undermine both market fairness and consumer protection. One fight is going.