Canada opens 60-day consultation on draft stablecoin rules

Canada has opened a 60-day consultation on draft rules for stablecoins issued by non-financial institutions. The proposed framework is part of the potential implementation of the country’s Stablecoin Act, and officials are asking the public to weigh in before the rules are finalized.

The draft would require issuers to hold reserves equal to the value of their tokens and allow holders to redeem them quickly. It would also cap redemption fees at 1% and prohibit issuers from paying holders interest, according to reporting on the proposal.

What would Canada’s stablecoin rules require?

The reserve requirement is intended to ensure that each stablecoin is backed one-for-one, while the redemption provisions address how quickly users can exchange tokens for their underlying value. The proposed fee cap would limit what issuers can charge for that exchange.

The ban on interest means a stablecoin issuer could not offer holders a yield simply for keeping tokens in their accounts. That distinction matters to users comparing payment-focused stablecoins with products marketed as ways to earn a return.

Why does the consultation matter to stablecoin users?

The draft puts practical user concerns—whether tokens are backed, how readily they can be redeemed, and what redemption costs—at the center of Canada’s proposed framework. For people using stablecoins to move or hold value, the rules could shape the protections and costs they face if the proposal is adopted.

Canada’s approach also comes as governments continue to seek public input on crypto rules; for example, the EU has solicited feedback on its MiCA framework. The specific Canadian proposal is still under consultation, so users and companies should treat these provisions as draft rules, not requirements already in force.

What happens next?

The consultation window lasts 60 days. The next meaningful step is the government’s response to public feedback and any changes it makes before finalizing rules. Issuers and users should watch in particular for whether the one-to-one reserve, fast-redemption, 1% fee cap and no-interest provisions remain in the final framework.