Canada’s Stablecoin Draft Allows Usage Rewards, Bars Issuers Paying Yield via Third Parties
AI summary
Canada's Department of Finance has released draft stablecoin regulations that permit usage-based rewards but prohibit issuers from paying yield through third parties. The proposal caps redemption fees at 1% and targets a fall 2027 start, with a public comment period open until Dec. 23. For traders, this signals a tightening regulatory framework for stablecoin economics in Canada, though the long timeline limits near-term market impact.
