DECRYPT · 2026-10-26 22:16 UTC

Canada’s Draft Stablecoin Rules Cap Redemption Fees at 1% and Ban Yield

Canada published draft stablecoin rules requiring one-to-one backing with cash and government debt, redemption within three business days with fees capped at 1%, and a ban on paying holders interest or yield. Reserves must be held with Canadian custodians in separate accounts, and issuers face penalties up to 10 million Canadian dollars for serious violations like inadequate reserves. The rules distinguish stablecoins from bank deposits and align with the U.S. GENIUS Act signed by Trump in July 2025, which also bans interest payments to holders.

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