Canada Follows U.S. Lead with New Stablecoin Rules

Canada has announced plans to introduce new rules for fiat-backed stablecoins, following the U.S. government’s GENIUS Act, which was passed into law in July 2025. 

This plan, included in the country’s 2025 federal budget, would require companies that issue stablecoins to follow strict rules to keep users’ money safe and protect their personal information. It would also include national security checks and clear redemption policies, so people can always exchange their coins for cash, according to the budget report.

A clear plan for safer digital money

The Bank of Canada will manage the system and handle its funding. According to the budget, the bank will keep $10 million from its Consolidated Revenue Fund over two years, starting in 2026–2027, to help run the new framework. After that, the annual cost of about $5 million will be covered by fees paid by stablecoin issuers.

The government also plans to update the Retail Payment Activities Act, which means any company using or offering stablecoin services in payments will now fall under Canadian regulation. Canadian officials said the goal is to make digital money safer and more reliable for the country’s 41.7 million residents. No official date has been given for when the legislation will be introduced in Parliament.

Some industry experts have welcomed the decision. In a tweet, Faryer Shirzard, CPO of Coinbase said that “Having a clear national law on stablecoins is particularly critical in Canada because of the mixed jurisdiction of federal and provincial authorities.”

He also praised the prime minister and his time for preparing the country and its currency to “to play an important role in the advent of tokenization in the future of the global financial system.”

Lucas Matheson, CEO of Coinbase Canada, also said the change would “transform how Canadians interact with money and the internet forever.”

Major step following global stablecoin trend

Canada’s proposed framework is similar to what the United States has already done when it passed the GENIUS Act into law. Moreover, it has become a global trend. Europe already has the Markets in Crypto-Assets Regulation in place, while Japan and South Korea are building their own systems. 

Meanwhile, reports from Keyrock and Latin American exchange Bitso project that the stablecoin market could hit $1 trillion in 2030.

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