The stablecoin market is showing some mixed signals right now

This shift came as a strong inflow during March gave way to aggressive outflows in April. That drop might mean crypto's risk-on season is cooling off.

The stablecoin market is showing some mixed signals.

According to blockchain analytics firm Nansen, exchange balances of stablecoins had recently dropped. Balances fell from $67 billion in March to $61.5 billion by the end of April.

This shift came as a strong inflow during March gave way to aggressive outflows in April. That drop might mean crypto’s risk-on season is cooling off. Or, it could mean money is simply moving to newer opportunities elsewhere.

March saw stablecoins flow in. April saw them drain out.In March, exchange inflows often matched or exceeded outflows, keeping balances fairly stable between ~$66B–67B.But in April? A clear reversal. Outflows dominated nearly every day, pulling total exchange balances down to… pic.twitter.com/VR3qrOe0iE

At the same time that balances are dipping on exchanges, stablecoins are seeing surging interest from institutions and governments.

The US Treasury Borrowing Advisory Committee, for the first time ever, discussed stablecoins as a legitimate “new payment mechanism” and a major buyer of US T-bills.

Related: Binance Lands $2 Billion From MGX, Deal Done Entirely in USD1 Stablecoin

With stablecoin issuers already holding over $120 billion in T-bills, projections suggest demand could grow by as much as $900 billion if stablecoin adoption picks up. To put that number in perspective, that projected $900 billion is nearly 14% of the entire $6.4 trillion T-bill market today.

For the first time ever, the Treasury Borrowing Advisory Committee discusses stablecoins as a "new payment mechanism" and a potentially huge source of demand for US T-Bills.Key observations:1. Stablecoin issuers currently hold >$120bn in T-bills2. Rapid growth in stablecoins… pic.twitter.com/Kl1gQk3Dh9

Meanwhile, on the retail front, Visa is quietly getting a stablecoin revolution going. The payments giant has launched a pilot program enabling users in six Latin American nations—including Argentina, Colombia, and Mexico—to spend stablecoins directly through Visa cards, in collaboration with Bridge (a Stripe subsidiary).

If successful, Visa plans to expand into Europe, Asia, and Africa, signaling a global integration of stablecoins into everyday transactions.

All of this happens as US lawmakers move closer to finally regulating the stablecoin sector. The Senate is fast-tracking the GENIUS Act, with bipartisan support and coordination with the House, which may soon bring about the first major crypto legislation in American history.

Majority Leader John Thune has pushed for a process that would eventually lead to a vote on the first even stablecoin regulatory bill in the US.

Related: Stablecoins Processed $14 Trillion in 2024, Exceeding Visa: Bitwise Data

The act aims to provide clear rules for stablecoin issuers and ensure foreign companies face the same regulatory standards—an effort widely supported by the Trump administration’s digital asset advisory team.While stablecoins ascend, the rest of the crypto market is undergoing its own shifts. Speculative memecoins have roared back into the spotlight, according to Santiment, as traders drift from Bitcoin and layer-1 protocols toward high-risk, high-reward plays.