Weekly net stablecoin inflows rebounded sharply last week, rising 414% to $1.7 billion, according to a report from Messari. The surge reversed a prior period of weak inflows and net outflows, with the 30-day average now showing $162.5 million in daily inflows. Transaction volumes increased 6.3%, though average transaction sizes declined, reflecting renewed issuance demand and stronger onchain activity among retail investors.
The inflow rebound comes amid ongoing regulatory debate in Washington over yield-bearing stablecoins. Banking groups have expressed concern that allowing stablecoin issuers to pay interest could divert deposits from traditional banks, prompting lawmakers to weigh restrictions in the broader GENIUS Act and related market structure legislation. Congressional negotiations have stalled, delaying key Senate committee discussions initially scheduled for mid-January.
The episode highlights the tension between market demand for stablecoin returns and federal regulatory efforts to safeguard traditional banking structures. While third-party platforms can still offer rewards tied to stablecoin holdings, issuer-paid yield remains restricted under current proposals. Observers note that onchain activity continues to expand, suggesting that stablecoins remain an important instrument in crypto market liquidity despite legislative uncertainty.
