Stablecoin Inflows Surge as Yield Debate Stalls US Bill

Weekly net stablecoin inflows rebounded sharply last week as on-chain activity picked up, even while U.S. lawmakers and banking groups argued over whether issuers should be allowed to pay yield, a Messari report found. Net weekly inflows rose to $1.7 billion, a 414.5% week-on-week increase, and the 30-day average flipped to positive daily inflows of $162.5 million. Transaction volumes climbed 6.3% while average transaction size fell, a combination Messari said points to renewed issuance demand and stronger retail on-chain participation.

Stablecoin inflows track net new stablecoins entering circulation after redemptions. The rebound follows a weaker period earlier in the year: Messari recorded just $249 million in weekly inflows two weeks earlier and $4.4 billion in net outflows over the 30 days ending Feb. 18.

The pickup in demand comes amid an intensifying policy debate in Washington over so-called yield-bearing stablecoins. Banking groups warn that allowing stablecoin issuers to offer interest could create a loophole that draws deposits away from banks and have pushed lawmakers to limit or ban such yields in broader market-structure negotiations. Disagreements over yield provisions prompted the Senate Banking Committee to postpone markup of the market-structure bill that had been planned for mid-January. President Donald Trump also criticized banks on social media for obstructing the bill.

Legislative proposals differ on restrictions. The GENIUS Act, a proposed federal framework for payment stablecoins, would prohibit issuers from paying interest or yield solely for holding a payment stablecoin, while still allowing third-party platforms to operate reward programs tied to balances. Separately, the Digital Asset Market Structure Clarity Act (the CLARITY Act), designed to establish a broader regulatory regime for digital assets, passed the House on July 17, 2025, and is now under Senate consideration.

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