The Canadian federal government is preparing to unveil stablecoin regulations as part of next week’s budget, signaling its intent to modernize payments and align with the U.S. GENIUS Act.
According to Bloomberg, officials have been meeting with regulators and industry leaders in recent weeks, and new policy details could be announced on November 4 when Finance Minister François-Philippe Champagne presents the budget.
Current Regulatory Landscape and Future Expectations
Canada currently lacks a dedicated legal framework for stablecoins, though some tokens may fall under existing securities or derivatives classifications. The new rules are expected to provide clarity for issuers and investors.
The Bank of Canada has urged the government to set clearer standards to keep pace with international developments, noting potential consumer and liquidity risks if regulation lags.
Canadian Stablecoin Market and International Alignment
While the domestic market for Canadian-dollar stablecoins remains small, Toronto-based Stablecorp’s QCAD remains one of the few fiat-backed options. U.S. dollar–pegged assets like USDC remain widely available.
Support for USDT was discontinued in 2023 on several Canadian exchanges amid compliance concerns, but U.S. dollar stablecoins have continued to dominate local markets.
The U.S. GENIUS Act, passed earlier this year, created clear requirements for fully collateralized stablecoins, including regular audits and AML safeguards, effective January 2027.
Since the U.S. legislation passed, the total value of U.S. dollar–pegged stablecoins has surpassed $300 billion, highlighting global growth momentum in the sector.
Canada’s move suggests it aims to align with its southern neighbor’s framework, ensuring stability while fostering innovation in its evolving digital asset landscape.