Canada targets yield and payment firms with stablecoin rules

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 play. The government is also proposing changes to the Retail Payment Activities Regulations that would require PSPs using approved stablecoins to perform payment functions within the scope of Canada’s Retail Payment Activities Act (RPAA).