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

Following the passage of a landmark stablecoin bill in the United States in July, Canada plans to introduce regulatory legislation for fiat-backed stablecoins within the framework of its 2025 federal budget.
According to the Canadian government's 2025 budget released on Tuesday, stablecoin issuers must meet the following requirements: maintain adequate reserves, establish a redemption policy, and implement various risk management frameworks, including measures to protect personal and financial data.
The Bank of Canada will allocate 10 million Canadian dollars over two years from fiscal year 2026-2027 to ensure the smooth progress of regulatory work; subsequent expected to incur related costs of about 5 million Canadian dollars per year, which will be partially offset by stablecoin issuers regulated under the Retail Payment Activities Act.
The Canadian regulatory plan comes four months after the United States passed the GENIUS Act, which has put pressure on Canada to develop domestic regulations for stablecoins.
While the budget does not specify when the legislation will be introduced, the move is part of a broader plan to modernize Canada's payment system - a plan to create a faster, cheaper and more secure digital transaction environment for 41.70 million across the country.