Circle Internet Group, Inc. (NASDAQ:CRCL) CEO Jeremy Allaire championed the real-world utility of stablecoins on Monday, fully endorsing transaction-based rewards for users.
A ‘Powerful Tailwind’ For USDC’s Adoption
During Circle’s first-quarter earnings call, Allaire responded to a question about the future of its USDC (CRYPTO: USDC) stablecoin in a world where rewards would be paid to end customers based on transactions.
“We are very focused on driving the utility value of this new form of money,” the CEO responded.
Alliare pointed to the updated language in the CLARITY Act that permits activity-based or transaction-based incentives on stablecoins, but restricts yields on passive holdings.
“It has to be based on real transactions, real payments volume, real activities, and that’s exactly the kind of incentivization that we want to see,” he added.
Allaire said that Circle is largely a “network effect-driven business” and anything that boosts the network’s utility serves as a “powerful tailwind” for adoption.
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The Senate Banking Committee is scheduled to hold a markup for the CLARITY Act on Thursday, following broad agreement from most cryptocurrency firms on the stablecoin compromise text.
The Clarity Act seeks to establish a federal regulatory framework for cryptocurrency in the U.S. President Donald Trump, who rode to power on a pro-cryptocurrency plank, supports the passage of the bill.
Circle Shares Pop After Earnings Beat
Circle reported an earnings beat in the first quarter, while its revenue fell short of estimates.
USDC in circulation reached $77.0 billion at quarter-end, up 28% year-over-year. The on-chain transaction volume of USDC also increased significantly, totaling $21.5 trillion during the quarter, representing 263% year-over-year growth.
The numbers attracted the attention of investment firms like Ark Invest, which snapped up 41,904 shares of Circle, worth about $5.5 million, through its ARK Blockchain & Fintech Innovation ETF (BATS:ARKF), ARK Innovation ETF (BATS:ARKK), and ARK Next Generation Internet ETF (BATS:ARKW).
Price Action: Circle shares fell 0.43% in after-hours trading after closing 15.91% higher at $131.46 during Monday’s regular trading session. The stock has had an impressive run lately, surging 33% over a month and more than 8% over the last week.
CRCL maintains a stronger price trend over the short, medium, and long terms, according to Benzinga’s Edge Stock Rankings.
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