Circle CEO Defends USDC’s Role, Dismisses Bank Warnings on Stablecoin Yields at Davos
Circle CEO Jeremy Allaire pushed back against banking industry claims that yield-bearing stablecoins like USDC threaten financial stability during a World Economic Forum panel in Davos. His defense comes as traditional banks intensify lobbying efforts against crypto's growing presence in deposit markets.
Bank of America CEO Brian Moynihan and JPMorgan CFO Jeremy Barnum have cautioned regulators that interest-paying stablecoins create a "parallel banking system" lacking prudential safeguards. The American Bankers Association is now urging Congress to address perceived regulatory gaps.
The debate unfolds alongside stablecoins' expanding role in global payments following the GENIUS Act. Allaire framed the tension as inevitable market evolution: "When you introduce efficiency to financial markets, incumbent stakeholders always perceive it as risk."
