Canada launches 60-day consultation on stablecoin rules, maintains ban on yields

Canada opened a 60-day public consultation on Oct. 26 on draft stablecoin regulations that would prohibit issuers from paying interest while allowing transaction-based rewards. The proposed framework requires non-bank issuers to hold reserves equal to circulating tokens at qualified Canadian financial institutions and redeem stablecoins within three business days, with fees capped at 1%. The rules are expected to take effect in late 2027.