The flow of money into stablecoins recovers to $1.7 billion as Washington debates interest rate regulations

Weekly net inflows into stablecoins have shown a strong recovery over the past week, as on-chain activity increased despite ongoing debates between U.S. lawmakers and banking groups about whether third parties should be allowed to pay interest on stablecoins. This information is reported in a new Messari report.

According to the report released on Wednesday, weekly net inflows into stablecoins rose to $1.7 billion, representing a 414.5% increase compared to the previous week. This recovery also reversed the 30-day average, reaching a positive value with $162.5 million in daily net inflows. At the same time, trading volume increased by 6.3%, while the average transaction value continued to decline. This reflects a renewed demand for stablecoin issuance, along with increased on-chain activity from individual investors.

Stablecoin inflows are understood as the net new stablecoins introduced into circulation after accounting for redemptions.

Surge After a Period of Lull

This recovery comes after a previous slowdown earlier in the year. Data from Messari shows that weekly net inflows into stablecoins only reached $249 million two weeks prior, while net outflows totaled $4.4 billion over the 30 days ending February 18.

Top Stablecoins by Yield | Source: Messari## Controversy Over Stablecoin Interest Rates Delays Market Structure Legislation

The renewed demand for stablecoins is occurring amid intensified debates in Washington over “interest-bearing” stablecoins. Banking groups have warned that allowing issuer-linked companies to pay interest could create a legal loophole, leading to withdrawals from traditional banks. They have called on lawmakers to impose restrictions on this practice as they negotiate a comprehensive market structure bill for cryptocurrencies.

The Digital Asset Market Structure Clarity Act, known as the CLARITY Act, is designed to establish a clear legal framework for digital assets. The bill was passed by the House of Representatives on July 17, 2025, but is still awaiting debate in the Senate.

Initially, the Senate Banking Committee was scheduled to review the bill in mid-January, but the hearing was postponed indefinitely due to disagreements over stablecoin interest rates.

On Tuesday, U.S. President Donald Trump criticized banks for delaying the bill’s passage in the Senate. He wrote on Truth Social:

“The GENIUS Act is being threatened and obstructed by banks, which is unacceptable — We will not let that happen.”

The GENIUS Act and the Legal Framework for Stablecoins

In addition to the CLARITY Act, the GENIUS Act was also passed by the House in July 2025 to provide a federal legal framework for stablecoins. The law prohibits stablecoin issuers from paying interest or profits solely for holding stablecoins. However, third-party platforms are still allowed to implement reward programs tied to stablecoin balances. President Trump signed the GENIUS Act into law on July 18, 2025.