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

Jinse Finance reported that following the United States' passage of a landmark stablecoin bill in July, Canada plans to introduce fiat-backed stablecoin regulatory legislation under its 2025 federal budget framework. According to the 2025 budget released by the Canadian government on Tuesday, stablecoin issuers will be required to meet the following requirements: hold sufficient reserves, establish redemption policies, and implement various risk management frameworks, including measures to protect personal and financial data. Starting from the 2026-2027 fiscal year, the Bank of Canada will allocate 10 million Canadian dollars over two years to ensure the smooth advancement of regulatory work; it is expected that subsequent related costs will be about 5 million Canadian dollars annually, 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 Stablecoin Regulation GENIUS Act (GENIUS Act), which put pressure on Canada and prompted it to formulate its own regulatory rules for stablecoins. Although the budget does not specify when the legislation will be submitted, this move is part of Canada’s overall “payment system modernization” plan—which aims to create a faster, lower-cost, and safer digital transaction environment for the country’s 41.7 million people.