Canada has opened a 60-day public consultation on proposed regulations governing stablecoin issuers that are not financial institutions, a framework that could prohibit issuers from paying interest or yield to tokenholders.

The government of Canada announced on Saturday that it would accept public comments on the draft stablecoin regulations until Dec. 23. The notice was published in Canada Gazette, Part I, the federal government's official publication for proposed regulations and the standard channel through which stakeholders weigh in before final rules are drafted. According to the proposal, the framework is designed to be consistent with stablecoin regulations in the United States and other jurisdictions in order to "reduce the overall regulatory burden on multi-jurisdictional issuers."

Stablecoins are digital tokens designed to hold a steady value against a reference asset, most often a fiat currency, and have become core market infrastructure for trading and payments. Under the proposed rules, non-financial institution stablecoin issuers would be restricted from offering interest or yield, a measure intended to discourage holding the tokens. Issuers would also be required to redeem stablecoins within three business days of a tokenholder's request and would be barred from charging a fee greater than 1% of the coins' total value.

The regulations fall under Canada's Stablecoin Act, which was passed in March and is intended to address issuers that are not financial institutions. According to the government, the proposed rules are required to enact the policy and include provisions for issuers to register with the country's central bank.

"The intention is for the proposed Regulations to come into force in fall 2027," the government said. "Once the proposed Regulations are in effect, issuers of stablecoins in Canada who are not financial institutions would be required to apply for registration with the Bank of Canada prior to issuing a stablecoin."

The consultation comes as stablecoin rules advance in other major jurisdictions. In the United States, the GENIUS Act, which establishes a regulatory framework for stablecoins, is scheduled to take effect in January 2027. Meanwhile, the European Union's Markets in Crypto Assets (MiCA) framework could give exchanges until January to halt services for stablecoins not in compliance with the rules, likely including Tether's USDt (USDT), the largest stablecoin by market capitalization. Submissions to the consultation will inform the final regulations ahead of the government's fall 2027 target, giving issuers active across Canada, the United States, and the European Union a window to weigh in as three major regimes take shape.