{
  "id": 16614464,
  "title": "Canada opens consultation on draft stablecoin rules, maintains ban on yields",
  "url": "https://urgent.news/2026/10/26/canada-opens-consultation-on-draft-stablecoin-rules-maintains-ban-on",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-26T14:23:41.000Z",
  "source": {
    "name": "CoinDesk",
    "slug": "coindesk",
    "url": "https://www.coindesk.com/policy/2026/10/26/canada-opens-consultation-on-draft-stablecoin-rules-maintains-ban-on-yields"
  },
  "original_language": "en",
  "account": "The Canadian government has launched a 60-day public consultation on draft stablecoin regulations, which will maintain a ban on yield payments while requiring non-bank issuers to deposit reserves with Canadian financial institutions. This comes as the banking industry in the country pushes for such a ban, following similar concerns raised in the U.S. about potential money outflows from bank accounts. The Stablecoin Act, passed earlier this year, mandates the explicit prohibition of yield payments, direct or indirect. The draft regulations are necessary for the implementation of the Stablecoin Act, which requires issuers to register with the Bank of Canada. Some Canadian crypto exchanges, like Coinbase Canada, have already received permission to offer yields on eligible tokens, but this is subject to warnings about risks and clear communication that funds are not insured. The proposed federal rules would prohibit stablecoin issuers from paying interest, even through third parties, except for transaction-linked rewards. Non-bank stablecoin issuers would need to hold reserves equivalent to the value of their circulating tokens with qualified Canadian financial institutions, including banks, credit unions, and trust companies. Customers would have to be able to convert their stablecoins back to regular currency within three business days, with redemption fees limited to 1%. The stablecoin framework is expected to take effect by late 2027. Meanwhile, Canada's six largest banks are reportedly considering a Canadian-dollar tokenized system to facilitate faster transactions among traditional financial institutions, following a statement from the country's banking regulator that tokenized deposits are \"not legally distinct from traditional deposits.\"",
  "summary": "Under the draft rules, non-bank stablecoin issuers must back tokens 1:1 with reserves held at qualified Canadian institutions and settle redemptions within three business days.",
  "key_points": [
    "Canada launches 60-day consultation on draft stablecoin regulations.",
    "Ban on yield payments maintained in proposed rules.",
    "Non-bank issuers must deposit reserves with Canadian financial institutions."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "PYMNTS",
        "title": "Canada’s Draft Stablecoin Rules Uphold Ban on Yield Payments",
        "url": "https://urgent.news/2026/10/26/canadas-draft-stablecoin-rules-uphold-ban-on-yield-payments",
        "published": "2026-10-26T19:22:46.000Z"
      },
      {
        "outlet": "Cointelegraph",
        "title": "Canada opens consultation on stablecoins, citing US GENIUS Act",
        "url": "https://urgent.news/2026/10/26/canada-opens-consultation-on-stablecoins-citing-us-genius-act",
        "published": "2026-10-26T19:47:40.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}