Canada Proposes Stablecoin Reserve and Redemption Rules, With Yield Ban Retained

Canada’s draft rules would require Canadian reserve custodians and cap redemption fees, while keeping issuer-paid yield off limits. Consultation closes December 23. Canada has proposed detailed rules for stablecoin reserves, redemptions and issuer oversight while retaining a prohibition on paying holders a yield simply for keeping tokens. The draft, published in the Canada Gazette on October 24, would support registration and supervision by the Bank of Canada under the Stablecoin Act. The consultation runs until December 23. The government intends implementation in fall 2027, subject to the process for bringing the legislation and regulations into force.