Canada opens consultation on draft stablecoin rules, maintains ban on yields

Canada opened a 60-day consultation on draft stablecoin rules that would prohibit issuers from paying interest but allow transaction-based rewards. The proposals include reserve requirements and a three-business-day redemption deadline, with the framework expected to take effect in late 2027.

• The Canadian government’s consultation on draft stablecoin rules runs until December 23, 2026.· 1 source
• The draft would prohibit stablecoin issuers from paying interest, including through third parties, while allowing rewards linked to transactions.· 1 source
• Non-bank issuers would need reserves equal to circulating tokens at qualified Canadian financial institutions and would have to redeem tokens within three business days, with fees capped at 1%.· 1 source