Stablecoin Rules on Canada’s Agenda Ahead of Federal Budget

The United States’ passage of the GENIUS Act, its first federal stablecoin law, has prompted several nations to consider similar measures. Canada appears set to follow suit, with reports suggesting that new regulatory measures could be included in the upcoming federal budget.

Preparing a Framework for Stablecoins

According to Bloomberg, Canada ’s Department of Finance and other government agencies have spent the past few weeks consulting with regulators and industry representatives to develop a clear framework for stablecoins. The goal is to include these measures in the federal budget to be presented on November 4 by Finance Minister François-Philippe Champagne.

Canada currently lacks a unified legal structure governing stablecoins, and discussions have focused on how to classify these assets. Officials are considering whether they should fall under securities or derivatives rules while also exploring ways to prevent funds from moving into U.S. dollar–pegged tokens.

As of now, the market for Canadian-dollar stablecoins remains small. QCAD, issued by Toronto-based Stablecorp, is fully backed by Canadian dollars held in reserve and stands out as one of the few domestic examples. Meanwhile, U.S. dollar–pegged stablecoins like USDC remain accessible to Canadian users, following the 2023 decision to end support for Tether’s USDt.

Industry and Central Bank Call for Clarity

Experts and financial officials have long emphasized the need for a clear regulatory framework, pointing to potential risks and opportunities for Canada’s financial system. Their observations highlight several key priorities:

• Delays in setting stablecoin rules could make Canadian bonds less appealing and reduce the Bank of Canada’s control over the money supply , according to John Ruffolo, co-chair of the Council of Canadian Innovators.
• The absence of domestic stablecoin options and clear legal guidance may prompt Canadian capital to move abroad, showing the importance of homegrown digital currency solutions.
• The Bank of Canada has also called for stablecoin rules to modernize the payment system and ensure the country stays competitive with other nations in using digital payment tools.

Global Trends in Stablecoin Oversight

Canada’s increased focus on stablecoins reflects a wider global effort to define rules for digital assets. In Europe, the Markets in Crypto-Assets Regulation (MiCA) has introduced a framework for issuers, establishing clear legal requirements. Across Asia, countries including Japan and Hong Kong are also developing stablecoin policies to ensure oversight and protect users.

Meanwhile, in June, U.S. legislators approved the GENIUS Act , introducing rules for creating fully backed stablecoins tied to the dollar. The act also introduced anti–money laundering safeguards and mandatory audits to enhance transparency and accountability, ensuring stablecoins can be used safely within the financial system.

The global stablecoin market has expanded significantly alongside regulatory developments. Data from CoinMarketCap shows their combined value is around $316 billion, reflecting the growing influence of these digital assets in financial markets worldwide.