Circle CEO Jeremy Allaire rejected banking industry claims that stablecoin yields threaten deposit stability, citing money market fund precedent as transaction volumes reached $33 trillion in 2025 amid legislative tensions.
Circle CEO Jeremy Allaire dismissed banking industry warnings that stablecoin rewards could destabilize traditional finance, calling such concerns “totally absurd” during a World Economic Forum panel discussion on Thursday.
His remarks came amid escalating tensions between crypto platforms and banks over provisions in pending U.S. market structure legislation.
Speaking at the Davos summit, Allaire defended the stablecoin industry’s growth trajectory while addressing claims from Bank of America CEO Brian Moynihan that yield-bearing digital dollars could trigger massive deposit flight from commercial banks.
The panel, which included International Monetary Fund First Deputy Managing Director Dan Katz and development finance expert Vera Songwe, examined stablecoins’ expanding role in global payments following last year’s passage of the GENIUS Act.
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