Canada opens stablecoin rules consultation, maintains ban on yield payments
60-day comment period ends Dec. 23; non-bank issuers must hold reserves at Canadian financial institutions
The Canadian government has launched a 60-day public consultation on draft stablecoin regulations that would prohibit issuers from paying interest on the tokens while allowing transaction-based rewards, and require non-bank issuers to back their stablecoins 1:1 with reserves held at qualified Canadian institutions.