Canada opens consultation on draft stablecoin rules, maintains ban on yields

Canada has opened a consultation on draft stablecoin rules, which would require non-bank stablecoin issuers to back tokens 1:1 with reserves held at qualified Canadian institutions. The rules would also require issuers to settle redemptions within three business days. The consultation is a significant development for the crypto industry in Canada, as it could provide clarity and stability for stablecoin issuers and users. The rules are designed to protect consumers and promote stability in the crypto market, and are expected to be closely watched by industry participants. The consultation is open to feedback from the public and industry stakeholders, and is expected to be an important step in the development of Canada's crypto regulatory framework. The rules could have significant implications for the crypto industry in Canada, and could provide a model for other countries to follow. As the crypto industry continues to evolve, regulatory clarity and stability will be increasingly important.