Following US Lead, Canada Moves to Regulate Stablecoins Amid Global Race for Crypto Clarity
In a direct response to regulatory advancements in the United States, Canada has committed to introducing its own stablecoin legislation. The 2025 federal budget promises laws to govern fiat-backed stablecoins, nearly four months after the US passed the GENIUS Act.
The Canadian framework will impose requirements similar to those emerging globally, including sufficient reserve backing and strong consumer protections. The Bank of Canada will receive $10 million to oversee the new regime, signaling the government’s seriousness in keeping pace with international financial innovation.
This move prevents Canada from falling behind in the rapidly evolving digital asset landscape. By establishing clear rules, the country aims to provide certainty for businesses and protect its citizens, ensuring it remains competitive in the global race to regulate the future of money.
