Catenaa, Friday, October 31, 2025- Canada is accelerating the creation of a regulatory framework for stablecoins, aiming to include it in the federal budget scheduled for November 4.
Officials say clear rules are needed to prevent capital flight to US dollar-backed tokens and maintain financial sovereignty.
Government sources told Bloomberg that consultations with regulators and industry stakeholders have intensified in recent weeks.
Policymakers are considering whether stablecoins should be classified as payment instruments rather than under existing securities or derivatives laws.
The urgency follows the United States’ passage of the GENIUS Act, which grants regulators authority to oversee stablecoin issuers, set reserve standards, and enforce anti–money laundering rules.
Canadian observers warn that without similar legislation, domestic investors and businesses may increasingly adopt US stablecoins, shifting liquidity and financial data abroad.
Bank of Canada and OSFI officials have stressed the need for national rules that ensure stability, safety, and parity with international standards. Experts note that while Canadian dollar-backed stablecoins exist, adoption has been limited due to regulatory uncertainty.
Firms such as Tetra Trust plan to launch CAD-backed tokens, but progress is expected to remain slow until federal guidance is issued.
Canada hosts over 3,000 Bitcoin ATMs and a growing number of institutional investors hold digital assets, yet adoption rates for crypto payments remain modest.
Analysts say a coherent regulatory approach could preserve Canada’s competitive position in the digital payments market and provide clarity for domestic innovation.
