Industry leaders argue risk aversion to blame for country\u2019s patchwork rules and slow implementation.<\/p>\n
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Greater clarity on Canadian cryptocurrency regulation appears to be on the way, andndustry leaders say the country needs it as quickly as possible.<\/p>\n
During a panel at Blockchain Futurist Conference<\/a> in Toronto on Tuesday, speakers from the Canadian Securities Exchange (CSE), Grinhaus Law Firm, Shakepay, and Tetra Digital Group said that, despite recent advances like the Stablecoin Act<\/a>, a lack of regulatory clarity continues to hamper domestic crypto innovation.<\/p>\n \u201cWe can\u2019t afford to sit here and gaze at our navels and engage in endless federal-provincial jurisdictional challenges.\u201d<\/p>\n Richard Carleton, This is not a new complaint: regulation has been a hot topic across the industry and a recurring theme at the Toronto conference<\/a>, where industry leaders have been at times supportive<\/a> and critical<\/a> of Canada\u2019s speed<\/a> and approach to regulating the technology.<\/p>\n With major crypto-related regulatory changes on the way in the United States via the stablecoin-focused GENIUS Act<\/a> and Digital Asset Market Clarity Act<\/a>, speakers argued that Canada must be quicker to implement its own regulations to stay competitive.<\/p>\n \u201cWe can\u2019t afford to sit here and gaze at our navels and engage in endless federal-provincial jurisdictional challenges,\u201d CSE CEO Richard Carleton argued. Carleton, who also serves as the non-executive chair at Calgary-based crypto firm Tetra<\/a>, said that these challenges are particularly pronounced for stablecoins.<\/p>\n Stablecoins<\/a> are a form of cryptocurrency whose value is pegged to a more stable asset, such as a fiat currency like the Canadian or US dollar. Some industry leaders expect them to play an important role<\/a> in the future of payments and, potentially, Canada\u2019s economic sovereignty<\/a>.<\/p>\n In Budget 2025, the Government of Canada committed<\/a> to moving quickly to implement a regulatory framework for fiat-backed stablecoins (as opposed to algorithmic, commodity-backed, or crypto-collaterized stablecoins) issued by non-financial institutions. The country\u2019s Stablecoin Act received royal assent in March, but has not yet come into force: the Department of Finance is now developing<\/a> supporting regulations targeted for 2027.<\/p>\n RELATED: Stablecoins will \u201cleapfrog\u201d real-time rail payments, finance leaders say<\/a><\/p>\n \u201cThere\u2019s a lot of fragmentation, and there\u2019s not enough clarity between what the feds do and how the provincial regulators work,\u201d said panellist Jasraj Hallan, a Calgary-based member of parliament (MP) and Conservative shadow minister for national revenue.<\/p>\n Hallan agreed that this lack of clarity is holding back Canadian crypto innovation, adding that the federal government could help by quickly turning the Stablecoin Act into an immediately available \u201cworkable framework\u201d offering a clear timeline to registration. The MP said that the feds could also help by working closely with the provinces to clearly define the roles each level of government has in regulating stablecoins.<\/p>\n Grinhaus founder Aaron Grinhaus, a lawyer who works with crypto firms, argued that despite being an early trailblazer in the cryptocurrency and blockchain space, Canada is \u201cnot competitive anymore.\u201d<\/p>\n
Canadian Securities Exchange<\/p>\n