Stablecoin Inflows Hit $1.7B as US Yield Debate Intensifies

Edgen Crypto

·Mar 05 2026, 10:12

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Key Takeaways

Weekly net inflows into stablecoins surged to $1.7 billion, marking a significant recovery in market liquidity even as US lawmakers remain deadlocked over regulations concerning yield-bearing stablecoins. The influx reverses a period of outflows and suggests renewed onchain activity, particularly from retail investors, despite the persistent regulatory uncertainty.

Massive Inflow Rebound: Weekly net stablecoin inflows increased 414.5% to $1.7 billion, flipping the 30-day average to a positive $162.5 million daily inflow.
Regulatory Stalemate: The US Senate's progress on the GENIUS Act has been postponed indefinitely due to disputes over allowing stablecoin issuers to pay yield, drawing criticism from banking groups and former President Trump.
Onchain Activity Strengthens: Coinciding with the inflows, transaction volumes rose 6.3%, signaling renewed stablecoin issuance demand and strengthened onchain participation from retail users.

Stablecoin Inflows Rebound 414% to $1.7 Billion

Stablecoin net inflows surged by 414.5% to $1.7 billion last week, signaling renewed demand and a sharp reversal from recent outflows. According to a Messari report published Wednesday, the influx flipped the 30-day average to a positive $162.5 million in daily inflows. This recovery follows a period of significant capital flight, which saw $4.4 billion in net outflows in the 30 days leading up to February 18. The report also notes that transaction volumes increased by 6.3%, indicating strengthened onchain activity, particularly from retail investors.

US Stablecoin Bill Stalls Over Yield-Bearing Rules

The renewed market activity contrasts with legislative gridlock in Washington, where a debate over yield-bearing stablecoins has indefinitely postponed a key crypto market structure bill. Banking groups are pushing lawmakers to restrict stablecoin issuers from offering yield, arguing it could destabilize the traditional banking sector by pulling away deposits. The dispute has stalled the Senate Banking Committee's markup of the GENIUS Act. The delay prompted former President Donald Trump to criticize the banking lobby's influence in a social media post.

The Genius Act is being threatened and undermined by the Banks, and that is unacceptable — We are not going to allow it.

— Donald Trump

The proposed GENIUS Act, which the House passed on July 17, 2025, prohibits issuers from paying interest directly for holding a stablecoin. However, it permits third-party platforms to offer rewards programs linked to stablecoin balances, a distinction that remains at the heart of the ongoing policy battle.