The post Canada Prepares Major Stablecoin Framework Following U.S. Regulatory Lead appeared on BitcoinEthereumNews.com. Regulations Canada appears ready to take its next major step into digital finance. According to sources cited by Bloomberg, the country’s federal government is finalizing new stablecoin regulations, expected to be unveiled with Finance Minister François-Philippe Champagne’s federal budget on November 4. The move signals Ottawa’s intent to close the regulatory gap that has left Canada lagging behind the United States and other advanced economies in defining how fiat-backed digital tokens should operate. Canada Moves Toward a Formal Stablecoin Framework For years, Canada has lacked a clear legal framework for stablecoins, leaving issuers uncertain whether their products qualify as securities or derivatives under existing law. Now, after weeks of behind-the-scenes discussions between government officials, regulators, and crypto industry leaders, a structured set of rules is reportedly near completion. Insiders describe the initiative as part of a broader financial modernization effort aimed at balancing innovation with consumer protection. Ottawa’s move could also mark the first time that stablecoin regulation is directly tied to the federal budget — a sign that policymakers view digital assets as an increasingly relevant component of the national economy. A Market Still Finding Its Footing Unlike the United States, Canada’s domestic stablecoin market remains relatively small. The QCAD token, launched by Toronto-based Stablecorp, is one of the few Canadian-dollar-backed options in circulation, maintaining a 1:1 peg to the CAD. Most Canadian crypto users, however, rely on U.S. dollar–denominated stablecoins like USDC, especially after Tether’s USDT was delisted from major local platforms in 2023. The limited availability of homegrown options has prompted calls for regulatory clarity to encourage domestic issuers to enter the space without fear of noncompliance. Central Bank Pushes for Action The Bank of Canada has become increasingly vocal about the need to regulate digital payment instruments. Ron Morrow, the bank’s head of payments and oversight,… The post Canada Prepares Major Stablecoin Framework Following U.S. Regulatory Lead appeared on BitcoinEthereumNews.com. Regulations Canada appears ready to take its next major step into digital finance. According to sources cited by Bloomberg, the country’s federal government is finalizing new stablecoin regulations, expected to be unveiled with Finance Minister François-Philippe Champagne’s federal budget on November 4. The move signals Ottawa’s intent to close the regulatory gap that has left Canada lagging behind the United States and other advanced economies in defining how fiat-backed digital tokens should operate. Canada Moves Toward a Formal Stablecoin Framework For years, Canada has lacked a clear legal framework for stablecoins, leaving issuers uncertain whether their products qualify as securities or derivatives under existing law. Now, after weeks of behind-the-scenes discussions between government officials, regulators, and crypto industry leaders, a structured set of rules is reportedly near completion. Insiders describe the initiative as part of a broader financial modernization effort aimed at balancing innovation with consumer protection. Ottawa’s move could also mark the first time that stablecoin regulation is directly tied to the federal budget — a sign that policymakers view digital assets as an increasingly relevant component of the national economy. A Market Still Finding Its Footing Unlike the United States, Canada’s domestic stablecoin market remains relatively small. The QCAD token, launched by Toronto-based Stablecorp, is one of the few Canadian-dollar-backed options in circulation, maintaining a 1:1 peg to the CAD. Most Canadian crypto users, however, rely on U.S. dollar–denominated stablecoins like USDC, especially after Tether’s USDT was delisted from major local platforms in 2023. The limited availability of homegrown options has prompted calls for regulatory clarity to encourage domestic issuers to enter the space without fear of noncompliance. Central Bank Pushes for Action The Bank of Canada has become increasingly vocal about the need to regulate digital payment instruments. Ron Morrow, the bank’s head of payments and oversight,…