Canada Unveils Stablecoin Regulatory Framework in 2025 Federal Budget

Canada's 2025 federal budget introduced legislation to regulate fiat-backed stablecoins. The framework will require issuers to maintain adequate reserves, establish redemption policies, implement risk management systems, and protect user data. The Bank of Canada will retain $10 million from its Consolidated Revenue Fund during fiscal 2026-27 to administer the program, with subsequent annual costs of $5 million funded through issuer fees.