Canada Advances Stablecoin Framework Ahead of Federal Budget
Canada is accelerating efforts to establish a regulatory framework for stablecoins, with key provisions expected in Finance Minister François-Philippe Champagne's November 2025 budget. The MOVE responds to competitive pressures after the U.S. enacted the GENIUS Act in July 2025—a comprehensive stablecoin law mandating 100% reserve backing that takes effect in 2027.
The $300 billion stablecoin market, dominated by USD-pegged tokens, could surpass $1 trillion within years. Canadian officials fear capital flight to U.S.-regulated alternatives without domestic rules. "Every transaction in U.S. stablecoins effectively funds American economic infrastructure," warns John Ruffolo of the Council of Canadian Innovators, highlighting sovereignty concerns.
