According to Bloomberg, Canada is accelerating the development of its stablecoin regulatory framework. Formal details are expected in the federal budget, which will be presented by Finance Minister François-Philippe Champagne on November 4.
The move comes as stablecoins, digital tokens pegged to traditional currencies, gain traction among financial institutions. Payment providers are increasingly adopting them for faster, cheaper, and more transparent transactions.
Building a Framework for Trust
For weeks, Canadian government officials have been in active discussions with financial regulators, banks, and crypto industry leaders to shape the country’s approach to stablecoin oversight. The goal is to create a clear rulebook that ensures both consumer protection and financial stability, while encouraging innovation in the digital asset sector.
Stablecoins like USDC and USDT have become key tools for global payments. They offer the speed of crypto with the stability of fiat currency. Yet, without clear rules, concerns remain about transparency, reserve backing. Also, how these digital assets fit within existing laws. Canada’s framework aims to address these issues head-on.
Canada is consulting on rules for stablecoins and may announce a major update in the federal budget next week https://t.co/qsDNuxTbSq
— Bloomberg (@business) October 27, 2025
A government source told Bloomberg that the new rules will likely define standards for how stablecoins are issued, backed, and audited. This could mean setting requirements for reserve assets—such as cash or short-term government bonds—and oversight measures to ensure that each token in circulation is fully supported. The initiative mirrors similar efforts in major economies such as the European Union. This case implemented its MiCA regulation earlier this year, and the United States. Here, lawmakers continue to debate federal stablecoin legislation.
More About Crypto Regulation
SEC Chair Gary Gensler recently stated that the agency is updating securities laws to explicitly include crypto assets. This marks a shift in approach, as the SEC moves from a focus on enforcement and punishment to fostering progress and innovation in the digital asset space.
🚨 BIG MOVE: SEC Chair Atkins says the agency is modernizing securities laws to include crypto assets. 🇺🇸
The SEC is moving from punishment mode to progress mode. 🚀
This is what clarity looks like and it changes everything. 💎#XRP #Ripple pic.twitter.com/zbVR5g9sd2
— John Squire (@TheCryptoSquire) October 27, 2025
By modernizing regulations, the agency aims to provide clearer guidelines for issuers, investors, and exchanges, creating a framework that balances investor protection with opportunities for growth in the rapidly evolving crypto market.
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