Canada's Draft Stablecoin Rules Ban Yield, Cap Redemption Fees at 1% - CoinMarketCap

Canada's draft stablecoin framework, as reported by CoinMarketCap, would prohibit issuers from offering yield on stablecoin holdings and cap redemption fees at 1%. Both provisions target the economics of holding and exiting a stablecoin rather than the mechanics of issuance itself.

The yield ban draws a clearer line between payment tokens and investment products. Stablecoins that pay interest can resemble deposits or securities, so restricting yield simplifies how issuers fit within existing regulatory categories. The 1% redemption cap addresses a different concern: liquidity and consumer access. A hard ceiling on exit costs limits how much issuers can charge when holders convert back to fiat, which matters most during stress periods when redemption demand spikes.

For the market, the draft signals that Canadian stablecoins may compete more on payments utility and reserve transparency than on returns. What to watch: whether the draft becomes final in its current form, how the 1% cap is defined and enforced, and whether issuers adjust their product structures or exit the Canadian market. Because these are draft rules, details could still change before implementation.