Canada Fast-Tracks Stablecoin Rules Ahead of November 4 Budget
Canada's government is accelerating efforts to regulate stablecoins, with detailed proposals expected in the federal budget on November 4. The move follows a record $126 million fine against a crypto firm for anti-money laundering violations, signaling heightened scrutiny.
Officials have engaged in intensive discussions with regulators and industry leaders to finalize stablecoin governance frameworks. Currently, Canadian regulators classify stablecoins as securities or derivatives—a stance that has created market uncertainty. The forthcoming rules aim to clarify their status as a bridge between digital assets and traditional finance.
The U.S. has already set a precedent with the Genius Act, which designates compliant stablecoins as payment instruments and establishes reserve requirements. Industry experts warn that Canada’s delay risks capital flight to jurisdictions with clearer regulations.
