Canada Opens Public Consultation on Non-Bank Stablecoin Regulations

stablecoin regulations — The Canadian government has launched a 60-day public consultation on proposed regulations for stablecoins issued by non-financial institutions, citing alignment with the U.S. GENIUS Act.

The consultation, which runs until December 23, 2026, outlines a framework under Canada’s Stablecoin Act passed in March. A key provision would prohibit non-bank stablecoin issuers from offering interest or yield payments to discourage holding the tokens as an investment.

Other proposed rules mandate that issuers redeem stablecoins within three business days of a holder’s request without charging a fee exceeding 1% of the total value. Issuers would also be required to register with the Bank of Canada before launching a stablecoin.

The government stated its intention is for the regulations to come into force in the fall of 2027, aligning with the planned January 2027 implementation of the U.S. GENIUS Act. The move aims to reduce regulatory burdens for issuers operating across multiple jurisdictions.