Question 1

Does Canada's draft stablecoin rule allow issuers to pay yield?

Accepted Answer

No. The proposed rules bar issuers from paying interest to holders, and the Stablecoin Act prohibits both direct and indirect yield, which Ottawa says includes platform-activity rewards.

Question 2

Who regulates stablecoin issuers under Canada's framework?

Accepted Answer

The Bank of Canada. Issuers must register with it and meet reserve, redemption, and governance requirements, while banks, credit unions, and insurers are excluded because they are already prudentially regulated.

Question 3

How does Canada's approach differ from the US GENIUS Act rule?

Accepted Answer

The OCC's final rule, effective January 18, 2027, dropped a presumption against certain third-party rewards and moved to case-by-case review, whereas Canada's draft bans yield outright, including activity-based rewards.

CADD

Canada’s draft stablecoin rules ban rewards and favor bank custodians

One sharp brief.
Every day.

CADD

Canada’s draft stablecoin rules ban rewards and favor bank custodians

One sharp brief.Every day.

One sharp brief.
Every day.