Canada accelerates the pace of stablecoin regulation or unveils new regulations in the federal budget

According to people familiar with the matter, Canada is in consultations on stablecoin regulations and could announce a major update in the federal budget to be released next week. Government officials have been in in-depth discussions with regulators and industry players for weeks, these people said. Canada's Finance Minister Peter Shang is said to be addressing the topic in the budget document to be released on November 4. In July, the United States passed the Genius Act, which empowers financial regulators to oversee stablecoin issuers and how their reserves are managed, and requires issuers to comply with regulations to prevent money laundering and circumvent sanctions. The new law has been welcomed by many in the crypto industry. However, in Canada, due to the lack of relevant legislation, regulators have said that stablecoins may constitute securities or derivatives. Some experts argue that they should be regulated as payment instruments and subject to strict supervision.