The Canadian government is preparing new rules for stablecoins, with an update expected in next week’s federal budget. Officials have been meeting with regulators and stakeholders, with a potential announcement on stablecoin regulation as early as Nov. 4. Canada lacks a comprehensive legal framework for stablecoins, but certain tokens may qualify as securities or derivatives under existing laws.

The domestic market for Canadian-dollar-pegged stablecoins is limited, with QCAD being the most notable example. US dollar-pegged stablecoins like USDC are still available in Canada after the discontinuation of support for Tether’s USDT in 2023. The Bank of Canada has urged the government to establish clearer rules for stablecoins to modernize the payment system and avoid falling behind other nations.

The United States has made significant progress in stablecoin regulation, passing the GENIUS Act to create a regulatory framework for dollar-backed stablecoins with anti-money laundering safeguards and regular audits. The legislation will go into effect in January 2027. Since the passage of the GENIUS Act, more companies have expressed interest in entering the stablecoin market, which now exceeds $300 billion in total value.

Read more at CoinTelegraph: Canada Could Unveil Stablecoin Rules in Federal Budget: Report