Canada Moves to Regulate Stablecoins, Aligning With U.S. Crypto Policy Shift
Canada is taking a major step toward crypto regulation by introducing oversight for fiat-backed stablecoins under its 2025 federal budget. The move aligns with the U.S. GENIUS Act, signaling a coordinated approach to digital asset policy.
The new framework mandates full asset reserves, clear redemption policies, and robust risk management for stablecoin issuers. It aims to enhance consumer confidence and modernize Canada's payment ecosystem as digital currencies gain global traction.
The Bank of Canada will allocate $10 million over two years starting in 2026-2027 to implement the regulatory framework. Costs will later be recovered from licensed issuers under the Retail Payment Activities Act.
This initiative follows Ottawa's 2024 decision to pause its central bank digital currency project, shifting focus to private-sector innovation under strict oversight. The framework ensures stablecoins meet national security and anti-fraud standards.
