Canada Proposes Stablecoin Rules, Sets 2027 Start

Canada has launched a 60-day consultation on proposed stablecoin rules for non-financial issuers, with comments due Dec. 23, 2026. The proposal follows the Stablecoin Act passed in March and is expected to take effect in fall 2027. The framework would require stablecoins to be backed one-to-one by reserves held separately at qualified Canadian financial institutions. Issuers would have to register with the Bank of Canada, initiate fiat redemptions within three business days and cap redemption fees at 1%; no minimum redemption amount is proposed. The rules would cover domestic and foreign issuers offering fiat-backed stablecoins to Canadians, regardless of the referenced currency. Issuers could not pay interest or yield based on how much or how long customers hold stablecoins, though transaction-linked rewards would remain permitted. Canada says the proposal is intended to align with rules in other jurisdictions. The US GENIUS Act is scheduled to take effect in January 2027, while EU MiCA requirements could lead exchanges to stop supporting non-compliant stablecoins. The consultation may shape market access and issuer compliance, but the rules remain proposals.