Canada opens consultation on stablecoin rules, keeps the yield ban in place

Canada has put its stablecoin rulebook on the table for public comment. The country is not budging on one point: holders still can’t earn yield just for sitting on the tokens. The Department of Finance published proposed regulations in the Canada Gazette on October 24, 2026. That started a 60-day public consultation that closes on December 23, 2026, at 11:59 p.m. EST. Ottawa wants feedback, but it has already decided that a stablecoin is a payments tool and not a savings account. What the draft rules actually require The proposed regulations sit under the Stablecoin Act, which received Royal Assent on March 26, 2026, through Bill C-15. The law passed months ago. These draft regulations add the operating detail. The framework would bring federal oversight to non-financial institutions that issue fiat-backed stablecoins with interprovincial or international reach. A token used only within one province would stay outside it. Anything that crosses provincial lines or borders, which covers most useful stablecoins, would fall inside. The core obligations break down like this: Registration. Non-bank issuers would need to register with the Bank of Canada. The central bank would take on a g...