Canada’s Stablecoin Rules Might Actually Make Sense (Or Not) 🥴

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Ah, Canada, the land of polite apologies, maple syrup, and apparently now, stablecoins. Yes, our federal overlords are reportedly tinkering with new rules for these digital tokens, possibly as soon as next week’s federal budget. Because nothing says “fun Friday” like a finance minister presenting a document that could make your digital money slightly less mysterious. 🤑

According to people who definitely know people, Bloomberg reports that government officials have been hobnobbing with regulators and industry insiders for weeks. One can only imagine these meetings involved polite sighs, excessive handshakes, and maybe a Tim Hortons coffee or twelve. The update could land on Nov. 4, when Finance Minister François-Philippe Champagne unveils the budget, probably with a flourish and a polite apology for all the fine print.

Canada still doesn’t have a clear legal framework for stablecoins, which is kind of like saying we don’t have a clear framework for polite line-cutting either-everyone sort of knows the rules, but no one wants to enforce them. Regulators have hinted that some tokens might qualify as securities or derivatives, or maybe just a polite suggestion to “behave yourself.”

As for Canadian-dollar-pegged stablecoins, the market is so tiny you might miss it if you blink. The poster child here is QCAD, issued by Toronto’s Stablecorp, a token backed 1:1 by the Canadian dollar. Imagine a digital loon that refuses to fly away-how reassuring. Meanwhile, US dollar-pegged stablecoins are still hanging around Canada, especially USDC, because Tether’s USDt has already disappeared into the ether like a polite ghost in 2023.

Playing catch-up with the United States

The Bank of Canada has been nudging the federal government, saying something along the lines of: “Regulate these things, or we’ll look like the kid still learning to tie their shoes while everyone else is flying cars.” Ron Morrow, who apparently has the weighty title of overseeing payments, supervision, and oversight, said governments are trying to protect consumers while still letting them enjoy their crypto treats. 🍁

Across the border, the U.S. has been sprinting ahead on stablecoins since President Trump took office. The GENIUS Act (yes, that’s its actual name) passed in June, promising fully collateralized, dollar-backed stablecoins with anti-money laundering safeguards. In other words, Uncle Sam is saying: “Go ahead, have fun, but don’t try to launder your way to a yacht.” The law kicks in January 2027, giving plenty of time for latecomers to panic politely.

Since then, interest in stablecoins has skyrocketed. US dollar-pegged stablecoins now exceed $300 billion, which is more than I have in my bank account and probably more than my therapist will admit to knowing. 💸

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2025-10-27 19:19