The Canadian federal government is poised to introduce new regulations on stablecoins, potentially within the forthcoming federal budget to be presented by Canadian finance Minister on November 4, according to Bloomberg. Discussions between government officials, regulators, and industry leaders have been ongoing for several weeks, aiming to establish a clear legal framework for these digital assets.
Currently, Canada lacks a comprehensive legal structure for stablecoins, though regulators have suggested that certain tokens may be classified as securities or derivatives under existing laws. The ambiguity surrounding their status highlights the urgency for regulatory clarity.
In the Canadian market, stablecoins pegged to the Canadian dollar, such as QCAD developed by Toronto-based Stablecorp, remain less prevalent. QCAD is a fiat-collateralized token, backed one-to-one by the Canadian dollar. Meanwhile, U.S. dollar-pegged stablecoins like USDC continue to circulate in Canada, particularly following the cessation of Tether’s USDT operations in the country in 2023.
The Bank of Canada has been advocating for a robust regulatory framework to modernize the nation’s payment systems. Ron Morrow, Head of Payments, Supervision, and Oversight at the Bank of Canada, emphasized the importance of regulation, stating, ‘Governments are moving to regulate stablecoins and other cryptocurrencies so consumers can reap their benefits and be protected from credit and liquidity risks.’
In the United States, regulatory progress has been swifter. The GENIUS Act, signed into law on July 18, 2025, under President Donald Trump’s administration, established a federal framework for issuing fully collateralized, dollar-backed payment stablecoins with anti-money laundering measures and mandatory audits, set to take effect no later than January 18, 2027 (or earlier if final regulations are issued sooner). Since the passage of the GENIUS Act, the market for U.S. dollar-pegged stablecoins has grown to exceed $300 billion.