Canada: Budget Implementation Act enacting Stablecoin Act including advertising rules was tabled in Parliament

On 4 November 2025, the Budget Implementation Act was tabled in the House of Commons. Division 45 of Part 5 introduces the Stablecoin Act, which establishes the framework for the issuance and offering of stablecoins. The Bill establishes the obligations and restrictions for stablecoin issuers. It prohibits providing false or misleading information, using regulated terms or symbols improperly, and offering interest or yield on stablecoins. Stablecoins cannot be represented as legal tender, deposits, or government-backed or insured instruments. Issuers are required to redeem stablecoins at par value according to a publicly available redemption policy, which must also be submitted to the Bank. They must maintain a reserve of assets equal to or exceeding the value of outstanding stablecoins, composed of high-quality liquid assets held with qualified custodians to ensure segregation from other assets and protection from creditors. Issuers must implement and maintain governance, risk management, data security, and recovery and resolution policies, and provide these to the Bank while making them publicly accessible. Issuers must report to the Bank on financial condition, outstanding stablecoins, reserve composition, and compliance, with statements from independent legal and accounting professionals. They must notify the Bank of incidents or significant changes and manage information in accordance with regulations. The Bank may request information, require undertakings, impose conditions, enter compliance agreements, issue directions, and recommend prohibitions on issuing stablecoins in cases of non-compliance or unsafe practices. The Minister may request information, impose conditions, and issue orders for national security or public interest purposes, including temporary measures. Confidential information may be protected if disclosure poses a risk. The Governor and the Minister may seek court enforcement, and courts may issue orders to ensure compliance, with standard appeal procedures available.