Canada to Introduce Stablecoin Regulations Mirroring US Framework in 2025 Budget
Canada is set to establish its first comprehensive regulatory framework for fiat-backed stablecoins as part of the 2025 federal budget, closely aligning with the approach taken by the United States earlier this year. The MOVE underscores Ottawa's commitment to modernizing payment systems amid accelerating global adoption of stablecoins.
The proposed legislation will mandate stablecoin issuers to maintain full reserves, implement clear redemption policies, and enforce robust risk management protocols—including safeguards for sensitive financial data. These measures aim to bolster trust in digital payment infrastructure while providing regulatory clarity for participants in Canada's growing cryptocurrency market.
The Bank of Canada has allocated $10 million over two years, beginning in fiscal year 2026-2027, to oversee implementation. Supervision costs will eventually be recovered from issuers regulated under the Retail Payment Activities Act. This development follows the US passage of its landmark GENIUS Act in July, signaling heightened global regulatory focus on stablecoin oversight.
