Canada Plans Stablecoin Rules Ahead Of Nov. 4 Federal Budget Announcement

CN
16 hours ago

Canadian federal officials are holding detailed consultations with regulators and industry on stablecoin rules, working toward measures Finance Minister François‑Philippe Champagne may unveil in the Nov. 4 federal budget, people familiar with the discussions told Bloomberg. Stablecoins are typically issued by non‑bank private entities and are often pegged to the U.S. dollar and backed by liquid assets such as U.S. Treasury bills.

The move follows the U.S. Genius Act, which treats compliant stablecoins as payment instruments and imposes reserve and anti‑money‑laundering requirements, and aims to prevent capital flight to U.S. stablecoins that could affect Canadian bonds and monetary control; some experts urge Canada to adopt payment‑instrument style oversight. Any Canadian framework will likely involve federal regulators and the country’s 13 provincial and territorial securities regulators, and may be implemented “where permitted by law,” officials say.

What timing should Canadians expect for stablecoin rules? Measures may appear in the Nov. 4 federal budget in Ottawa.
Will Canada regulate stablecoins like the US Genius Act? Officials are considering payment‑instrument style oversight similar to the U.S. approach.
Which Canadian regulators will be involved? Federal agencies plus Canada’s 13 provincial and territorial securities regulators are likely involved.
How could this affect Canadian dollar stablecoins? New rules aim to support Canadian‑dollar stablecoins and limit capital flowing to U.S. stablecoins.

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