Canadas 2025 Budget: C$10M for Stablecoin Regulation
Canada’s 2025 federal budget allocates C$10 million to establish national stablecoin regulation. From 2026–27, the Bank of Canada will implement Canada stablecoin regulation by overseeing issuers that must maintain reserves, clear redemption policies, risk-management systems and data protection. After initial funding, annual C$5 million operating costs will be covered by issuer fees. Concurrent amendments to the Retail Payments Act extend oversight to payment providers using stablecoin rails. The framework aligns Canada stablecoin regulation with the US GENIUS Act and EU MiCA, covering a US$305.9 billion market forecast to attract US$1 trillion by 2028. In the wake of a record C$126 million fine against Cryptomus, these measures aim to boost transparency, market stability and liquidity. Crypto traders can expect clearer compliance rules and improved confidence in trading, potentially driving long-term volume growth.
Bullish
Canada stablecoin regulation provides clarity and oversight, reducing execution risk and boosting market trust. In the short term, crypto traders may face compliance adjustments and modest fee increases, creating neutral to slightly bearish sentiment. However, clearer rules and unified standards are likely to drive increased adoption, liquidity and stablecoin usage in the long term, supporting a bullish outlook for stablecoin trading in Canada.