Canada’s new budget introduces stable federal rules, aligning with US policy and positioning the country as a global leader in digital asset oversight.
(Photo by Tom Carnegie on Unsplash)
Published November 5, 2025 at 9:03 am EST.
The federal government of Canada has announced plans to regulate stablecoins backed by fiat currencies by legislation describe in its 2025 budget published Tuesday. This framework follows the U.S. GENIUS Act passed in July, requiring issuers to maintain sufficient reserves and establish repurchase policies.
Stablecoin operators must implement risk management systems protecting personal and financial data in accordance with the proposed rules. The Bank of Canada will allocate $10 million over two years starting in fiscal year 2026-27, with $5 million in annual costs then offset by issuers regulated under the Retail Payments Activities Act.
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Coinbase Canada CEO Lucas Matheson told CBC the regulation would forever change the way Canadians interact with money and the internet. The stablecoin market currently stands at $309.1 billion, with the US Treasury forecasting growth to $2 trillion by 2028.
Major financial institutions, including Western Union, SWIFT, MoneyGram, and Zelle, have recently integrated or announced stablecoin solutions. Tetra Digital has raised $10 million to develop a digital Canadian dollar backed by Shopify, Wealthsimple and the National Bank of Canada.
