Canada opens consultation on stablecoins, citing US GENIUS Act

As part of the potential implementation of its Stablecoin Act, the Canadian government will hear from the public on a proposed framework for tokens from non-financial institutions.

Lawmakers in the Canadian government opened a 60-day public consultation on regulations proposed to address non-financial institution stablecoin issuers, including a potential prohibition on yield payments.

On Saturday, the government of Canada gave notice that it would be open to public comment on the stablecoin regulations until Dec. 23. The proposed framework cited efforts to be consistent with stablecoin regulations in the United States and other jurisdictions, to “reduce the overall regulatory burden on multi-jurisdictional issuers.”

Notably, the proposed regulations said that non-financial institution stablecoin issuers would be restricted from offering interest or yield to discourage HODLing the tokens. They would also be required to redeem stablecoins within three business days of requests from tokenholders, and not charge a fee greater than 1% of the coins’ total value.

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