Canada plans to introduce stablecoin regulatory legislation under the framework of the federal budget in 2025.

[Canada plans to introduce stablecoin regulatory legislation under the framework of the 2025 federal budget] Following the United States passing a landmark stablecoin bill in July, Canada plans to introduce regulatory legislation for fiat-backed stablecoins under its 2025 federal budget. According to the 2025 budget proposal released by the Canadian government on Tuesday, stablecoin issuers must meet the following requirements: hold sufficient reserves, establish redemption policies, and implement various risk management frameworks, including measures to protect personal and financial data. The Bank of Canada will allocate CAD 10 million over two years starting from the 2026-2027 fiscal year to ensure the smooth advancement of regulatory work; it is also expected that approximately CAD 5 million in related costs will be incurred annually thereafter, which will be offset by stablecoin issuers regulated under the Retail Payment Activities Act. Four months before Canada launched its regulatory plan, the United States had just passed the GENIUS Act, which imposed pressure on Canada to develop its own regulatory rules for stablecoins. Although the budget proposal does not specify the submission time for the legislation, this initiative is part of Canada's overall plan for “modernizing the payment system” — a plan aimed at creating a faster, lower-cost, and safer digital transaction environment for the country's 41.7 million people.