Canada Proposes New Stablecoin Rules With No Yield Allowed
Oct 29, 2026
Canada's draft stablecoin framework would require full reserves and fast redemptions, while banning non-bank issuers from paying yield.
Following the GENIUS Act Playbook
Canada has unveiled a new set of proposed rules for stablecoins, and they're stricter than a lot of people expected. The draft framework would require issuers to back their tokens with 100% reserves and guarantee redemptions within three business days, two measures clearly inspired by the US GENIUS Act and similar frameworks popping up around the world.
The part that's raising eyebrows, though, is the plan to stop non-bank stablecoin issuers from paying out yield on held balances. That would put Canada in a different camp from jurisdictions that allow yield-bearing stablecoins, and it could shape which issuers decide to operate there.
Why It Matters
The consultation explicitly references the GENIUS Act, showing regulators are watching closely how other countries handle this fast-growing corner of crypto. If adopted, the rules would give Canadian users clearer protections, but less room for yield-chasing than some of their counterparts abroad.