Canada Opens Public Consultation on Stablecoin Framework Aligned With US GENIUS Act

The Canadian government initiated a 60-day public consultation on proposed regulatory standards for non-financial institution stablecoin issuers on Saturday ¹. The framework aims to align domestic standards with cross-border policies, explicitly referencing the United States' GENIUS Act to ease compliance friction for entities operating across multiple jurisdictions ¹.

Under the drafted guidelines executing Canada's Stablecoin Act enacted in March, non-bank issuers must register directly with the Bank of Canada before circulating tokens ¹. The framework introduces operational constraints designed to deter asset hoarding and safeguard liquidity, notably barring non-financial issuers from distributing interest or yield on stablecoins ¹. Additionally, issuers would face strict redemption obligations, requiring tokenholder redemption requests to settle within three business days while capping redemption fees at a maximum of 1% of total transaction value ¹.

Regulatory Alignment

Ottawa's move coincides with a broader global push to codify fiat-pegged token supervision, mirroring earlier efforts detailed in Canada Proposes Stablecoin Regulations to Bring National Oversight Under Bank of Canada ¹. While the US GENIUS Act is scheduled to take effect in January 2027, Canadian authorities target an implementation window of fall 2027 ¹. The feedback window remains open through Dec. 23, allowing stakeholders to contest operational mandates before final rules are codified ¹.