By Vicky Ge Huang

The annual payouts on stablecoins offered by crypto platforms are similar in nature to loyalty and reward programs found in traditional products, Circle Internet Group CEO Jeremy Allaire said on Thursday.

Allaire's comments come as the crypto and banking industries remain locked in a lobbying battle over stablecoin rewards, or yield-bearing token products that banks claim are unregulated deposits that threaten traditional savings accounts.

"Even your Uber cash or whatever it is. All of these kinds of products, whether they're in brokerage or in payments or in e-commerce, in credit cards, there's lots of different examples of this," Allaire told Journal House at the World Economic Forum in Davos, Switzerland. "And so that's really important, we think, for people who are building products and services that use this technology to be able to do those kinds of things."

The fight is threatening to derail legislation known as the Clarity Act that is intended to bring crypto into mainstream finance. A Senate Banking Committee vote on the Clarity Act was postponed last week after crypto exchange Coinbase Global abruptly withdrew its support.

Coinbase offers a 3.5% reward rate on USD Coin to consumers that participate in its premium program. Circle issues the USD Coin, which has a $74 billion market cap.

"We think broadly the Clarity Act and the Senate companion bills, et cetera are very, very good," Allaire said. "Our view is we are talking about some different interests, navigating specific language around rewards systems, [that] seems like a solvable problem."

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(END) Dow Jones Newswires

January 22, 2026 15:58 ET (20:58 GMT)

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