Canada Opens Stablecoin Rules Consultation and Keeps Ban on Yield

Canada's Department of Finance opened a 60-day public consultation on draft stablecoin rules ending December 23. Non-bank issuers must back tokens 1:1 with reserves held at qualified Canadian institutions. Issuers cannot pay interest on stablecoins, but rewards tied to transactions remain allowed. Holders must be able to redeem tokens within specified timelines.