Canada to Regulate Stablecoins After US Law Takes Effect

New framework and oversight

The framework will require issuers to hold adequate asset reserves, implement risk controls, and protect users' personal data, the budget said. The Bank of Canada will allocate CAD 10mn (roughly $7mn) over two years from 2026–27 to oversee payments supervision, with CAD 5mn in annual costs to be recovered from issuers regulated under the Retail Payment Activities Act.

Details on when the legislation will be introduced have not yet been disclosed. The move follows the US's GENIUS Act, signed into law in July, which created America's first federal stablecoin regime. That month also marked the strongest for cryptocurrencies so far this year, with total market capitalization rising 14%

"This signals that Canada is ready to lead on digital innovation,” Coinbase Canadian CEO Lucas Matheson told CBC yesterday. "Stablecoins will make payments faster, cheaper and more accessible for all."

Market context and response

Stablecoins, tokens pegged to national currencies, account for roughly one-tenth of the total crypto market, with a combined value of about $312bn as of 5 Nov, according to CoinGecko. The largest, Tether's USDT and Circle's USDC, remain dollar-backed, though newer entrants include euro, yen and gold-pegged versions.

The market has expanded rapidly in 2025, led by USDT, up more than 30% year-to-date. Even US President Trump's government-linked stablecoin, USD1, launched in March, has climbed to sixth by market cap, with about 2bn coins in circulation.

Canada's planned framework would make it one of the first G7 economies with a dedicated licensing regime for fiat-backed digital currencies. The Bank of Canada said the rules aim to 'ensure stability and safeguard consumer interests as payments innovation accelerates.'