Canada Could Unveil Stablecoin Rules in Federal Budget: Report

The Canadian federal government was preparing new rules for stablecoins, with a potential update coming in next week’s federal budget, signaling that more countries could follow the lead of the United States after the landmark passage of the GENIUS Act.

Citing people familiar with the discussions, Bloomberg reported Monday that government officials have been meeting with regulators and industry players for several weeks. The update of the stablecoin regulation could be unveiled as early as November 4, when Finance Minister François-Philippe Champagne presents the federal budget.

Canada does not have a comprehensive legal framework for stablecoins, although regulators have previously indicated that some tokens could qualify as securities or derivatives under existing law.

The domestic market for stablecoins pegged to Canadian dollars remains limited. The most notable example is QCAD, issued by Toronto-based Stablecorp, a fiat collateralized token backed 1:1 by the Canadian dollar.

Stablecoins pegged to the US dollar remain available in Canada, specifically USDC (USDC), after discontinuing support for Tether’s USDt (USDT) in 2023.

Related: Coinbase invests in Canadian stablecoin issuer

Playing catch-up with the United States

Developments come as The Bank of Canada urged the federal government to establish clearer rules for stablecoins to modernize the country’s payment system – or risk falling behind other nations in adopting the technology.

“Governments are moving to regulate stablecoins and other cryptocurrencies so that consumers can reap their benefits and be protected from credit and liquidity risks,” said Ron Morrow, who oversees payments, oversight and supervision at the Bank of Canada.

The United States has moved rapidly on the stablecoin front since President Donald Trump took office. In June, lawmakers passed the GENIUS Actwhich created a regulatory framework for issuing fully collateralized, dollar-backed stablecoins with anti-money laundering safeguards and regular audits.

The new legislation will come into effect in January 2027.

Since the passage of the GENIUS Act, more companies have shown interest in entering the stablecoin market, which has continued to expand. Stablecoins pegged to US dollars now exceed $300 billion in total value.

Related: Despite Government Shutdown, Crypto Market Structure Is ‘90% Here’ – Coinbase CEO