Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 12 NOVEMBER 2025

Federal Budget Sets Stage For Canadian Stablecoin Legislation, But Key Contours Remain Unclear

Osler, Hoskin & Harcourt LLP
Explore more from Osler, Hoskin & Harcourt LLP

Budget 2025 announces forthcoming federal legislation to regulate fiat-backed stablecoins in Canada, shifting oversight from provincial authorities to the Bank of Canada.

CanadaTechnology
Matthew T. Burgoyne
Matthew T. Burgoyne
Author LinkedIn connections

Key Takeaways

  • Budget 2025 announces forthcoming federal legislation to regulate fiat-backed stablecoins in Canada, shifting oversight from provincial authorities to the Bank of Canada.
  • Issuers will need to maintain reserve assets, implement redemption policies and ensure risk management, aligning with existing CSA guidelines but now codified into law.
  • Amendments to the Retail Payment Activities Act will clarify the relationship between payment service providers and prescribed stablecoins.
  • Unanswered questions remain regarding the distinction between fiat-backed stablecoins and those classified as securities.

On November 4, 2025 the government of Canada released Budget 2025 [PDF]. Although the budget contained a wide range of fiscal and tax measures, one line in particular stood out for participants in Canada's digital asset industry. The federal government intends to introduce legislation that will regulate the issuance of fiat-backed stablecoins

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

New AI Safety Standard Relevant To Canadian School Boards

A major U.S. vendor agreement has established a rigorous new AI safety standard for educational technology, prohibiting the use of student data for AI training and enforcing strict data minimization. While the standard does not directly bind vendors in Canada, Canadian school boards can leverage this precedent to demand equivalent contractual protections and strengthen their own AI governance frameworks.
CanadaTechnology
Borden Ladner Gervais LLP
Borden Ladner Gervais LLP
Article

Stablecoins, Different Route: OSC Grants Exemptive Relief From Registration For Stablecoin Trading

On July 30, 2026, the Ontario Securities Commission (the OSC) issued a decision (the Decision) granting exemptive relief from the dealer registration requirement to a United States-based crypto asset infrastructure provider, zerohash LLC (the Company). The Decision permits the Company to operate an immediate delivery stablecoin trading platform for Canadian clients, trading specified stablecoins without dealer registration.
CanadaTechnology
Cassels
Cassels
Article

The Trade War Tit-for-tat Continues: United States Responds To Canada’s Retaliatory Surtaxes With New Tariffs And Import Prohibitions

Canada and the United States have escalated their trade war with new retaliatory tariffs and import prohibitions taking effect in September 2026. What specific goods are now subject to these measures, and how do the complex layers of tariffs interact to impact cross-border commerce? This comprehensive analysis breaks down the latest developments in the deteriorating Canada-U.S. economic relationship.
CanadaInternational Law
Osler, Hoskin & Harcourt LLP
Osler, Hoskin & Harcourt LLP
Article

Canadian Prime Minister Announces ‘Productivity Mega Deduction’

Canada's new Productivity Mega Deduction permanently provides immediate expensing for a wide range of depreciable property and Canadian development expenses, dramatically expanding the scope beyond the previously announced Productivity Super Deduction. The measure aims to reduce Canada's marginal effective tax rate on new business investment to 6.4%, positioning it as the lowest among major economies and less than half the U.S. rate.
CanadaTax
Osler, Hoskin & Harcourt LLP
Osler, Hoskin & Harcourt LLP
Article

Elbows Back Up: U.S. Section 338 Tariffs, Canada’s Retaliatory Surtaxes And The Current Tariff Landscape

As Canada and the United States escalate their trade dispute with new retaliatory tariffs, businesses face mounting compliance challenges across multiple sectors. This analysis examines the comprehensive tariff landscape affecting bilateral trade, including Canada's September 8, 2026 surtaxes on U.S. imports and the corresponding American section 338 tariffs, detailing rates, exemptions, and the legal frameworks governing these measures.
CanadaInternational Law
Osler, Hoskin & Harcourt LLP
Osler, Hoskin & Harcourt LLP