[Canada Releases Draft Stablecoin Regulations, Prohibiting Issuers from Paying Returns to Holders] On October 24, Canada released a draft stablecoin regulation in the Canada Gazette, prohibiting issuers from paying direct or indirect returns to holders. The draft requires non-financial institution issuers to register with the Bank of Canada and hold a 1:1 reserve of high-quality liquid assets in banks. Banks, trust companies, and other entities subject to prudential regulatory bodies are exempt from this framework; bank tokenized deposits can still pay interest. The draft has entered a 60-day consultation period, and the Canadian Ministry of Finance expects the rules to take effect in 2027. The Canadian Bankers Association supports the return ban, while Stablecorp CEO Kesem Frank advocates following the US model and allowing partial rewards. (Source: Cryptopolitan)