The Canadian federal government is reportedly preparing new rules for stablecoins, with an update potentially coming in next week’s federal budget. This move signals that more countries may follow the United States’ lead after the landmark passage of the GENIUS Act.
Citing people familiar with the discussions, Bloomberg reported on Monday that government officials have been meeting with regulators and industry stakeholders for several weeks. The update on stablecoin regulation could be unveiled as early as November 4, when Finance Minister François-Philippe Champagne presents the federal budget.
Currently, Canada lacks a comprehensive legal framework for stablecoins, though regulators have previously indicated that certain tokens could qualify as securities or derivatives under existing laws. The domestic market for Canadian-dollar-pegged stablecoins remains limited. The most notable example is QCAD, issued by Toronto-based Stablecorp, a fiat-collateralized token backed 1:1 by the Canadian dollar.
US dollar-pegged stablecoins remain available in Canada, most notably USDC, following the discontinuation of support for Tether’s USDt in 2023.
### Playing Catch-Up with the United States
These developments come as the Bank of Canada has urged the federal government to establish clearer rules for stablecoins in order to modernize the country’s payment system and avoid falling behind other nations in adopting this technology.
“Governments are moving to regulate stablecoins and other cryptocurrencies so consumers can reap their benefits and be protected from credit and liquidity risks,” said Ron Morrow, who oversees payments, supervision, and oversight at the Bank of Canada.
The United States has moved quickly on the stablecoin front since President Donald Trump took office. In June, lawmakers passed the GENIUS Act, which created a regulatory framework for issuing fully collateralized, dollar-backed stablecoins with anti-money laundering safeguards and regular audits. The new legislation will go into effect in January 2027.
Since the passage of the GENIUS Act, more companies have shown interest in entering the stablecoin market, which has continued to expand. US dollar-pegged stablecoins now exceed $300 billion in total value.
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*Related: Coinbase invests in Canadian stablecoin issuer*
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