Update: Advancing Stablecoins in Canada - Figment
Update: Advancing Stablecoins in Canada
Eme Housser
Senior Director, Legal & Regulatory Affairs
Published
December 16, 2025
While some clarifications are needed, the draft Stablecoin Act published by the Government of Canada on December 8, 2025, is a huge step forward and will ensure that stablecoins can be used and treated the same in Canada as in other jurisdictions.
Background
Since February 22, 2023, Canadian Securities Administrators (CSA) have taken the view that stablecoins “may constitute securities and/or derivatives.”
- Stablecoin issuers wishing to be listed by registered crypto trading platforms (CTPs) in Canada have had to comply with the CSA’s “interim approach” and file undertakings with the CSA.
- For Canadians, this has meant that transactions in stablecoins may invite application of the various provincial securities laws around investor protection laws rather than the consumer protection safeguards we see in other jurisdictions.
The Canadian Stablecoin Act
On December 8, 2025 after years of advocacy by the industry, including the Canadian Web3 Council, of which Figment is a founding member, a draft Stablecoin Act was published by the Government of Canada in an effort to regulate the issuance of fiat-backed stablecoins by non-prudentially regulated issuers in Canada. This will bring Canada into alignment with other jurisdictions, with many similarities to the U.S. GENIUS Act.
Highlights of the Draft Legislation
- Issuers must register with and will be regulated by the Bank of Canada.
- Amendments to the Retail Payment Activities Act (RPAA) will further integrate stablecoins into Canada’s broader digital payments regulatory framework.
- Issuers will be subject to extensive disclosure and documentation requirements.
- Stablecoins must be redeemable on a 1:1 basis and backed by a reserve of high-quality liquid reserve of assets of equal or greater value, which must be held in segregated accounts by a qualified custodian.
Where Questions Remain
- In the new draft, there is a prohibition on granting, directly or indirectly, interest or yield to holders. The inclusion of “indirectly,” unlike the U.S. GENIUS Act, creates ambiguity regarding the capture of distribution benefits. Clarification is needed for compliance and product design.
- It does not apply to Canadian financial institutions, such as banks or central banks, nor to closed-loop stablecoins.
- While the Act specifies that stablecoin issuance is not “dealing in securities,” we have yet to see if the CSA will issue any clarifications on its previous guidance noted above and how it will address issuers who have complied with the interim approach.
What’s Next?
To support this momentum, Figment is signing this parliamentary petition, sponsored by MP Nathaniel Erskine-Smith, that calls for meaningful action on stablecoin policy. Along with Stand With Crypto Canada, we welcome others to sign the petition to help keep stablecoins part of the national conversation.
About Figment
Figment is the leading provider of staking infrastructure. Figment provides the complete staking solution for over 1500 institutional clients, including asset managers, exchanges, wallets, foundations, custodians, and large token holders, to earn rewards on their digital assets.
The information herein is being provided to you for general informational purposes only. It is not intended to be, nor should it be relied upon as, legal, business, tax or investment advice. Figment undertakes no obligation to update the information herein.