- The Canadian federal government plans to introduce new rules for stablecoins as part of the upcoming federal budget.
- Finance Minister François-Philippe Champagne may present the update as early as November 4.
- Canada currently lacks a clear legal framework for stablecoins, though some are regulated as securities or derivatives.
- The Bank of Canada supports clearer regulations to modernize the payment system and keep pace with other countries.
- The U.S. recently passed the GENIUS Act, creating a regulatory framework for stablecoins effective January 2027, with market value exceeding $300 billion.
The Canadian federal government is preparing new regulations for stablecoins, with an announcement expected during the federal budget presentation on November 4. This move aims to clarify the legal status of stablecoins in Canada and align with global trends.
Officials have held discussions with regulators and industry players in recent weeks to develop the proposed framework. Currently, Canada does not have a comprehensive legal system for stablecoins, though some tokens may already be classified as securities or derivatives under existing laws.
The market for Canadian dollar–pegged stablecoins remains small, with the main example being QCAD, a token fully backed 1:1 by the Canadian dollar and issued by Toronto-based Stablecorp. In contrast, U.S. dollar–pegged stablecoins, such as USDC, are more widely used in Canada, especially after Tether discontinued support for its USDt token in 2023.
The Bank of Canada has urged the government to establish clearer rules for stablecoins to support the modernization of the payment system and avoid falling behind other countries. “Governments are moving to regulate stablecoins and other cryptocurrencies so consumers can reap their benefits and be protected from credit and liquidity risks,” said Ron Morrow, who oversees payments and oversight at the Bank of Canada.
In the U.S., lawmakers passed the GENIUS Act in June, setting a regulatory framework for fully collateralized, dollar-backed stablecoins. This legislation includes requirements for anti–money laundering safeguards and regular audits, with the rules effective starting January 2027. Since the law’s passage, interest in the stablecoin market has grown, with the total value of U.S. dollar–pegged stablecoins surpassing $300 billion.
Related: Bloomberg
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