Canada weighs stablecoin rules as it aims to align with US GENIUS Act framework.

Canada is preparing to unveil stablecoin rules in its upcoming federal budget, signaling plans to modernize payments and align with the US GENIUS Act’s regulatory structure.

Canada weighs stablecoin rules as it aims to align with US GENIUS Act framework

Canada is preparing to introduce new rules for stablecoins as part of its forthcoming federal budget, marking a decisive step toward modernizing the nation’s financial infrastructure. The move comes amid growing global momentum for digital asset regulation, with the United States’ GENIUS Act now serving as a benchmark for many economies seeking clarity and consumer protection in the digital currency landscape.

Officials familiar with the discussions have revealed that Canadian regulators have been holding talks with major financial institutions and crypto industry representatives to refine the scope of the upcoming measures. The anticipated announcement could arrive as early as November 4 when Finance Minister François Philippe Champagne is scheduled to present the federal budget.

A regulatory reboot for Canada’s digital payments landscape

For years, Canada’s approach to digital assets has been defined by fragmented oversight. While the country’s securities regulators have occasionally classified some tokens as securities or derivatives, there has been no unified legal framework governing the issuance or use of stablecoins. The forthcoming measures are expected to address that gap, establishing a structured path for both issuers and investors.

Stablecoins, which are digital currencies pegged to fiat assets, have become central to global payment innovation. Yet Canada’s domestic market remains relatively small compared to the United States. Toronto-based Stablecorp’s QCAD token remains one of the few Canadian dollar-backed options, supported by fiat reserves held in local financial institutions. Meanwhile, US dollar-pegged stablecoins like USDC continue to dominate Canadian exchanges following the phase-out of support for Tether’s USDt in 2023.

According to analysts, the proposed framework could accelerate domestic stablecoin adoption while promoting innovation in fintech and cross-border settlements. By laying out clear compliance and transparency requirements, Canada aims to strike a balance between encouraging growth and maintaining investor protection.

Following the US GENIUS Act playbook

The catalyst behind Canada’s renewed focus on digital currency oversight is the progress made south of the border. Earlier this year, the United States enacted the GENIUS Act, a comprehensive framework that formalizes the issuance of fully collateralized dollar-backed stablecoins. The legislation mandates periodic audits, robust anti–money laundering controls, and strict reserve management standards for issuers.

The GENIUS Act, set to take effect in January 2027, has already begun reshaping the global conversation around digital money. The Bank of Canada, long an advocate for payment modernization, has urged the government to follow similar principles. Ron Morrow, who oversees payments and supervision at the Bank of Canada, emphasized that regulatory clarity is essential for enabling innovation while protecting users from credit and liquidity risks.

The United States’ proactive stance has not gone unnoticed. Since the passage of the GENIUS Act, the value of US dollar-pegged stablecoins has surged past $300 billion, underscoring the growing demand for regulated digital assets. Observers believe Canada’s new rules will closely align with this model, potentially paving the way for interoperability between North American payment systems.

A pivotal moment for Canada’s crypto future

As Ottawa prepares to reveal its federal budget, the spotlight is firmly on how Canada positions itself in the evolving global financial order. The stablecoin framework is expected to be a cornerstone of that strategy, signaling a move toward greater regulatory maturity.

Industry participants argue that comprehensive stablecoin legislation will not only foster trust but also attract international fintech players seeking compliant jurisdictions. By clarifying the rules of engagement, Canada could enhance its competitiveness and open new opportunities for blockchain-based payment solutions.

Moreover, the push to regulate stablecoins reflects a broader effort to future-proof the Canadian economy. As digital currencies increasingly bridge traditional finance and decentralized systems, policymakers recognize that a coherent strategy is vital for ensuring stability and innovation coexist.

The upcoming budget presentation will be a defining moment in that journey. If implemented effectively, the framework could position Canada alongside the United States as a leader in digital asset regulation, reinforcing North America’s role in shaping the next era of global payments.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.