Canada is entering the final stages of discussions on stablecoin regulation, with Finance Minister Chrystia Freeland expected to address the topic in the upcoming federal budget on November 4, 2025. This move follows growing concern that Canada risks falling behind the United States, which passed the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) in July 2025, a comprehensive federal framework governing payment stablecoins.
According to sources familiar with the matter, Canadian government officials have been in active talks with regulators and industry leaders for several weeks to outline a potential policy roadmap. The discussions reportedly focus on creating a clear licensing structure for stablecoin issuers and payment intermediaries, as well as ensuring compliance with anti-money laundering and consumer protection rules.
Payment Infrastructure Developments
In a parallel development, Wyrr, a global payments infrastructure provider, was officially registered by the Bank of Canada as a Payment Service Provider (PSP) under the country’s enhanced payments framework. This registration marks a step toward integrating regulated fintech firms into Canada’s digital payments ecosystem, a move some see as a precursor to broader stablecoin oversight.
International Context and Economic Implications
Analysts say Ottawa’s cautious approach contrasts sharply with Washington’s proactive stance. A recent Motley Fool report compared USDC and Tether, noting that U.S. dollar-pegged stablecoins dominate global market share, with regulatory clarity driving institutional adoption south of the border.
Economists warn that if Canada fails to establish its own stablecoin framework soon, it could trigger capital flight toward U.S. markets, weakening demand for Canadian bonds and complicating the Bank of Canada’s control over the domestic money supply.
Looking Ahead to the Federal Budget
As the November budget approaches, industry participants are watching closely to see whether Freeland’s fiscal plan includes a dedicated chapter on digital finance and stablecoin policy, potentially signaling Canada’s long-awaited entry into the next phase of monetary modernization.