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Canada to Outline Stablecoin Framework in November Budget

Officials seek to curb capital flight by clarifying how fiat-backed tokens are classified.

Overview

  • The Nov. 4 federal budget is expected to present an outline of nationwide rules for fiat-backed stablecoins, with full implementation projected to take months.
  • Policymakers are centering the framework on whether such tokens are securities or derivatives, a decision that will determine oversight, reserves, and redemption standards.
  • Concerns over Canadians migrating to U.S. dollar stablecoins are driving the push, with industry voices warning of risks to economic sovereignty and monetary policy.
  • FINTRAC last week imposed a record C$126 million fine on Cryptomus for 2,593 anti–money laundering violations, underscoring regulatory urgency.
  • Domestic issuers are preparing to launch: Stablecorp advanced its QCAD and raised about C$5 million in September, while Tetra Trust raised C$10 million and targets an early-2026 CAD token subject to approvals, with officials considering alignment with the U.S. GENIUS Act taking effect in early 2027.