The Canadian government has introduced draft regulations for stablecoins that maintain a prohibition on yield payments. Under these rules, nonbank issuers must hold their reserves exclusively within Canadian financial institutions.
The consultation period for these regulations remains open until December 23. The initiative follows lobbying efforts by the domestic banking sector, which fears that stablecoin yield payouts could lead to capital outflows from traditional bank accounts, potentially impacting lending capacity.
These regulations are essential for the implementation of the Stablecoin Act, which was passed earlier this year. The act establishes the framework for issuers to register with the Bank of Canada. Currently, some exchanges, such as Coinbase Canada, offer yields under specific conditions set by the Ontario Securities Commission.
In the United States, the Office of the Comptroller of the Currency has finalized regulations under the GENIUS Act, effective January 18, 2027. These rules focus on asset backing, risk management, and redemption rights for stablecoin issuers.
While the U.S. rules prohibit issuers from paying interest directly, they do not impose a total ban on third-party reward arrangements. The OCC plans to review such programs on a case-by-case basis, noting that existing rewards will not be automatically grandfathered into compliance.
