Canada’s stablecoin regulations set for November seek to curb capital outflows and safeguard national sovereignty

Canada Plans to Introduce Stablecoin Regulations in November Budget

Canada is moving quickly to establish a regulatory system for stablecoins, aiming to reveal significant details in the federal budget scheduled for November 4, 2025. According to Bloomberg and several industry and government insiders cited in

, this initiative seeks to tackle rising worries about capital shifting to U.S. dollar-based stablecoins and to position Canada at the forefront of digital asset oversight. Finance Minister François-Philippe Champagne has spearheaded collaboration with regulators and industry stakeholders, prioritizing the classification of stablecoins as securities or derivatives and the creation of measures to guard against liquidity threats.

The push for regulation is driven by the swift growth in stablecoin transactions, which now total $2.7 billion daily and nearly $1 trillion annually, based on Bank of Canada figures reported in

. Analysts caution that without a cohesive policy, Canadians may increasingly turn to U.S. stablecoins, which make cross-border payments easier but could undermine the country’s financial independence. John Ruffolo, co-chair of the Council of Canadian Innovators, warned that regulatory delays might reduce demand for Canadian government bonds and weaken the central bank’s influence over monetary policy, as he told . “If we fail to respond, Canadian funds could move to the U.S.,” he said, pointing out the risk of higher interest rates and less economic stability.

Recent developments in the U.S., especially the GENIUS Act signed by President Trump in July, have added urgency to Canada’s efforts. The law requires that approved stablecoins be entirely backed by U.S. Treasuries, boosting global demand for dollar-pegged tokens. Mirza Shaheryar Baig, a currency strategist at Desjardins, observed that more than 99% of stablecoin value is now linked to the U.S. dollar, resulting in persistent demand for American debt due to reserve obligations. This trend has raised concerns among Canadian policymakers about increasing reliance on U.S. financial systems.

Internationally, Canada’s strategy aligns with regulatory movements in the European Union, Japan, and Hong Kong, where stablecoin rules are either in place or being developed. The EU’s Markets in Crypto-Assets Regulation (MiCA) and Hong Kong’s rigorous licensing requirements for stablecoin providers highlight the global shift toward formal oversight. The Bank of Canada has pressed the government to act promptly, warning that falling behind could harm Canada’s standing in the digital finance arena.

The upcoming Canadian regulations are anticipated to cover consumer safeguards, clear reserve disclosures, and redemption guarantees—issues that gained attention after the TerraUSD collapse in 2022. While there is no official plan yet to launch a Canadian-dollar stablecoin, authorities emphasize that any such project must carefully balance innovation with economic stability. The budget will lay out the first steps, but full rollout could take several months, according to industry experts.

At present, all eyes are on the November 4 budget as the main milestone. If implemented, Canada’s regulatory approach could become one of the most comprehensive stablecoin frameworks outside the U.S. and EU, providing certainty for both issuers and investors and reducing the dangers of unregulated digital currencies.