Stablecoin inflows recorded a sharp rebound last week, signaling renewed activity across the digital asset market even as regulatory discussions in Washington continue to slow broader crypto legislation. According to recent market data, weekly net inflows into stablecoins climbed to approximately $1.7 billion, representing a surge of more than 400% compared with the previous week.
The increase also pushed the 30 day average back into positive territory, reaching roughly $162.5 million in daily inflows. Alongside the rise in inflows, overall transaction volume increased by about 6.3%. However, the average transaction size declined, suggesting that smaller participants and retail users were responsible for a significant portion of the activity.
Stablecoin inflows measure the amount of newly issued tokens entering circulation after accounting for redemptions. The latest rebound follows a period of weaker demand earlier in the year, when the market experienced several weeks of modest inflows and billions of dollars in net outflows during the previous month.
Yield-Bearing Stablecoin Debate Slows U.S. Crypto Legislation
The uptick in stablecoin demand comes as policymakers continue to debate rules surrounding yield‑bearing stablecoins. Banking industry groups have argued that allowing stablecoin issuers to provide yield could attract deposits away from traditional banks.
A proposed regulatory framework, often referred to as the GENIUS Act, seeks to regulate stablecoin issuers at the federal level. The proposal would prevent issuers from offering direct interest for simply holding payment stablecoins, although third‑party platforms may still introduce reward programs linked to stablecoin balances.
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Disagreements over these provisions have delayed progress on broader digital asset legislation currently under discussion in the U.S. Senate.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.