Canada Proposes Stablecoin Rules That Address Banks’ Concerns

Canada’s lawmakers are weighing in on an issue that has been top of mind for banks as stablecoins gain traction: yield. The country’s regulators have proposed draft stablecoin rules that would prohibit issuers from paying interest to token holders, either directly or through third parties. Transaction-based rewards, however, would still be allowed. The proposed framework […] The post Canada

The draft rules would extend Bank of Canada oversight to stablecoin issuers and introduce new compliance requirements. The Government of Canada has proposed regulations that would prohibit stablecoin yield and introduce rules for issuers and payment providers. The proposed Stablecoin Regulations would bring the Stablecoin Act (SCA), which received royal assent in March 2026, into […]

The Canadian government has kicked off a 60-day public consultation on draft stablecoin regulations that would maintain a ban on yield payments.

Canada began a 60-day consultation period on draft stablecoin regulations, CoinDesk reported Monday (Oct. 26). The regulations uphold a ban on yield payments and require nonbank issuers to keep their reserves with Canadian financial institutions, the report said. The consultation, which ends Dec. 23, is happening as Canadian banks lobby for a prohibition on yield […] The post Canada’s Draft