Circle CEO Jeremy Allaire, in an interview with CNBC, avoided questions about Bitcoin's (BTC) weak performance this year. He is focused on creating digital dollars for a future where money will be managed by AI-based software.
The U.S. Office of the Comptroller of the Currency (OCC), which regulates banks, is preparing final rules for the GENIUS Act – the 2025 law establishing the issuance procedure for dollar-pegged stablecoins. According to Allaire, this step secures a separate niche for his sector.
CNBC's Seema Mody inquired why Bitcoin has grown slower than the market this year if the future is behind cryptocurrency. Circle's CEO responded, "I don't particularly follow how individual digital assets are traded and what happens to them."
He explained that digital dollars serve as payment instruments, used for trading, lending, and investing, rather than speculation. Stablecoins are specifically designed to maintain a $1 peg, so they do not mirror Bitcoin's price fluctuations. Allaire also noted increased activity in blockchains like Arc, which Circle launched in September.
According to Allaire, AI agents – programs that perform tasks independently – will take on more economic functions. He believes this shift will increase demand for digital dollars and specialized blockchains – the very infrastructure Circle is building. However, Allaire did not provide any estimates of such demand.
He added that the new rules directly affect Circle as the issuer of the stablecoin USD Coin (USDC). According to Orrick, the OCC's project implies that issuers will need to hold reserves no less than the volume of issued stablecoins and guarantee their redemption at face value within two business days. Issuers are also prohibited from paying interest to token holders.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.
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