Stablecoin inflows rebound as US lawmakers clash over yield rules

Stablecoin inflows rebounded sharply last week as activity across blockchain networks strengthened, even as debate in Washington intensified over how these digital tokens should be regulated.

A new report from Messari showed capital returning to dollar-pegged cryptocurrencies after a period of net outflows earlier this year.

Weekly net stablecoin inflows rose to $1.7 billion, signalling a recovery in demand for these assets.

The rebound also coincided with rising transaction volumes and growing participation from retail investors.

At the same time, policymakers and banking groups remain divided over whether stablecoin issuers should be allowed to offer yield, a dispute that has slowed progress on crypto legislation in the United States.

Stablecoin inflows surge as activity strengthens

Messari’s report, published on Wednesday, showed weekly net stablecoin inflows climbing to $1.7 billion, a 414.5% increase compared with the previous week.

Stablecoin inflows track the net amount of tokens entering circulation after redemptions are accounted for.

The metric indicates how much new capital is moving into the crypto ecosystem through dollar-backed tokens.

The rebound also pushed the 30 day average into positive territory.

Over the past month, daily inflows averaged $162.5 million.

Blockchain usage increased alongside the inflows.

Transaction volumes rose 6.3% during the week, signalling stronger onchain activity across stablecoin networks.

Average transaction size continued to decline. Messari said the trend suggests rising participation from retail investors rather than large institutional transfers.

The surge follows a weaker period earlier in the year.

Two weeks earlier, Messari recorded weekly inflows of $249 million.

Over the 30 days leading up to Feb. 18, the market experienced $4.4 billion in net stablecoin outflows.

Yield debate slows crypto legislation

The renewed demand for stablecoins comes as debate intensifies in Washington over yield bearing stablecoins.

Banking groups have warned that allowing stablecoin issuers to pay yield could create a loophole that draws deposits away from traditional banks.

Industry representatives have urged lawmakers to restrict the practice as they negotiate a broader crypto market structure bill.

The Senate Banking Committee had initially scheduled a markup of the bill for mid January.

However, disputes over stablecoin yield provisions forced the session to be postponed indefinitely.

Trump criticises banks over stablecoin bill

The debate escalated on Tuesday when US President Donald Trump criticised banks for delaying the legislation.

In a post on the Truth Social platform, Trump said banks were threatening the progress of the Senate bill.

The proposal under discussion is the GENIUS Act, which aims to establish a federal regulatory framework for stablecoin issuers.

Under the bill, issuers would be prohibited from paying interest or yield solely for holding a payment stablecoin.

However, third party platforms would still be able to offer rewards programmes linked to stablecoin balances.

Broader crypto regulation still under debate

The stablecoin discussions are unfolding alongside wider efforts to define how digital assets should be regulated in the US.

One major proposal is the Digital Asset Market Structure Clarity Act, known as the CLARITY Act.

The legislation is designed to establish a framework for digital asset regulation and clarify oversight responsibilities among regulators.

The US House of Representatives passed the CLARITY Act on July 17, 2025. The measure remains under debate in the Senate.