Weekly stablecoin deposits surge to $1.7B amid heated Washington debate on yield regulations
According to Messari, stablecoin inflows jumped 414% on a weekly basis to reach $1.7 billion while discussions surrounding yield-bearing stablecoins remain a roadblock in US market structure legislation.
Net weekly stablecoin inflows made a strong comeback during the past week as blockchain-based activity increased, even as United States policymakers and banking industry representatives engaged in disputes over the permissibility of stablecoin issuers offering yield to holders, a newly released Messari research report indicates.
Net stablecoin inflows on a weekly basis surged to $1.7 billion, representing a 414.5% jump compared to the previous week, the report released on Wednesday reveals.
This rebound additionally shifted the 30-day moving average into positive territory at $162.5 million in daily inflows. Transaction volumes experienced a 6.3% uptick, while the average size of individual transactions kept decreasing, indicating revitalized demand for stablecoin minting and enhanced blockchain activity among everyday investors, according to the report's findings.
Net stablecoin inflows measure the total amount of newly issued stablecoins that have been added to circulation minus those that have been redeemed.
This dramatic increase comes after a sluggish stretch during the early months of the year. Information from Messari revealed weekly inflows of $249 million during the period two weeks prior and net outflows totaling $4.4 billion throughout the 30-day span ending on Feb. 18.
Stablecoin yield debate stalls US market structure bill
This resurgent market demand emerges at a time when the conversation in Washington has intensified regarding stablecoins that offer yield to their holders. Representatives from the banking sector have contended that permitting stablecoin providers to distribute yield would establish a regulatory gap that might siphon deposits from traditional banking institutions, and have called on legislators to impose limitations on this practice during negotiations for comprehensive cryptocurrency market structure legislation.
Originally slated for mid-January, the Senate Banking Committee's planned markup session for the legislation was delayed without a new date being set due to disagreements surrounding stablecoin yield provisions.
During Tuesday, United States President Donald Trump expressed criticism toward banking institutions for obstructing progress on the Senate's legislative proposal.
"The Genius Act is being threatened and undermined by the Banks, and that is unacceptable — We are not going to allow it,"
said Trump in a Tuesday post on the Truth Social platform.
The GENIUS Act, which establishes a federal regulatory structure for overseeing stablecoin providers, bars issuers from distributing interest or yield payments purely for maintaining holdings of a payment stablecoin. Third-party service platforms, on the other hand, retain the ability to provide rewards programs that are linked to stablecoin account balances.
In a separate development, the Digital Asset Market Structure Clarity Act, commonly referred to as the CLARITY Act, aims to establish a more comprehensive regulatory architecture for the digital asset sector. The House of Representatives approved this legislation on July 17, 2025, and it remains the subject of ongoing deliberations within the Senate.