Canada opens consultation on stablecoin rules modelled partly on US law

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Canada has launched a 60-day public consultation on proposed stablecoin regulations for non-bank issuers, with comments accepted until 23 December. The government said the framework aims to align with rules in the US and other jurisdictions.

The proposed rules would prohibit non-bank issuers from paying interest or yield on stablecoins, require redemptions within three business days and cap redemption fees at 1% of the total value.

The regulations would implement Canada’s Stablecoin Act, passed in March, and require issuers to register with the Bank of Canada.