The Canadian government is accelerating efforts to regulate stablecoins and could unveil a major policy update in its federal budget next week, according to people familiar with the matter.
Sources cited by Bloomberg said government officials have held extensive consultations with regulators and industry participants over the past several weeks to craft a clearer national framework for stablecoins.
The discussions, which remain confidential, are expected to culminate in a formal announcement when Finance Minister François-Philippe Champagne presents the federal budget on November 4.
Stablecoins, digital tokens designed to maintain a fixed value by pegging to traditional currencies like the U.S. or Canadian dollar, have become increasingly important to Canada’s growing digital-asset ecosystem.
However, the country still lacks a unified rulebook defining how such assets should be classified or supervised.
This regulatory gap has left developers and payment firms uncertain about whether stablecoins will be treated as payment instruments, securities, or derivatives. Securities regulators in several provinces have previously indicated that certain stablecoin models could fall under securities or derivatives law, further complicating compliance requirements.
Industry groups have urged Ottawa to adopt a more tailored approach, noting that many stablecoins are used primarily for payments and remittances, not speculation.
The absence of clear national rules, they argue, has slowed innovation and deterred companies from launching new financial products or expanding existing services in Canada.
The upcoming budget update is expected to outline guiding principles for stablecoin oversight, potentially covering licensing, reserve management, and transparency standards.
Observers see the move as part of a broader federal strategy to modernize Canada’s financial-technology regulations and align with international efforts to supervise digital assets more consistently.
If adopted, the new framework could help Canada strike a balance between fostering fintech innovation and ensuring financial stability amid the rapid growth of blockchain-based payment systems.