Canada will allow stablecoin rewards for spending, but not for holding

Canada has proposed a stablecoin rule that would let an issuer reward a payment while barring it from paying people to keep tokens in their wallets. The distinction appears in draft regulations published October 24, with comments open until December 23. Section 14 permits rewards tied to a stablecoin transaction and excludes payments tied to holding the token. The proposal treats an issuer's third-party income-sharing arrangement as indirect yield when it encourages rewards for holders. Issuers would redeem any amount within three business days, with fees capped at 1% of the redeemed value.