Canada Races to Regulate Stablecoins Amid Global Regulatory Push
Canadian officials are fast-tracking a regulatory framework for stablecoins, aiming to include it in the upcoming federal budget. The MOVE comes as authorities seek to classify these digital assets—either as securities or derivatives—to prevent regulatory arbitrage and maintain monetary policy control.
Industry leaders warn that hesitation could trigger capital flight to U.S. dollar-pegged tokens, potentially undermining domestic bond markets. "Delays could erode demand for Canadian bonds and weaken the Bank of Canada’s control over monetary policy," said John Ruffolo of the Council of Canadian Innovators.
The November 4 proposal aligns with global efforts, as jurisdictions from Europe to Asia accelerate their own stablecoin regimes. Canada's approach reflects a broader trend: nations are no longer willing to cede oversight of these monetary policy-adjacent instruments.
