Crypto Regulation Update: New US and Canadian Rules for Digital Assets
October 14, 2026 | ATN Trade & Finance
Both the US and Canada have moved significantly on digital asset regulation in 2026, with the US enacting its first major crypto legislation and Canada tightening its enforcement posture.
United States: The GENIUS Act Is Law
The most consequential development of the year is the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), signed by President Trump on July 18, 2025 — the first major crypto legislation enacted in US history. The law requires stablecoins to be fully backed by US dollars or similarly liquid assets, mandates annual audits for issuers with market caps above $50 billion, and creates a federal licensing framework. Its operative compliance date is January 18, 2027, with service providers barred from offering unlicensed stablecoins to US persons starting July 18, 2028.
Implementation is now active. The US Treasury issued a Notice of Proposed Rulemaking on August 17, 2026 to implement the Act's licensing and foreign-issuer provisions, with public comments due approximately 60 days after Federal Register publication. The proposal clarifies when a stablecoin counts as "issued in the US" and restricts digital asset service providers from offering foreign-issued stablecoins unless the foreign issuer can comply with US legal orders.
SEC and CFTC: A Joint Taxonomy
On March 17, 2026, the SEC and CFTC issued a joint interpretive release sorting cryptoassets into five categories: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities. Only digital securities are subject to securities law. The agencies followed this with a formal MOU on March 11, 2026 committing to harmonize product definitions, clearing and margin rules, and dual-registrant requirements. The SEC separately proposed Regulation Crypto Assets on August 18, offering a startup exemption for raises up to $5 million and a tiered fundraising exemption up to $75 million annually, along with a conditional safe harbor from investment contract classification for projects that can demonstrate their token is no longer a security.
The CFTC approved a cash-settled 24/7 Bitcoin perpetual futures contract on a registered exchange on May 29, 2026 — the first of its kind in a regulated US market.
Canada: New Stablecoin Law, Stiffer Penalties, Enforcement Wave
Canada enacted two significant pieces of digital asset legislation on March 26, 2026. Bill C-15, now the Stablecoin Act, makes the Bank of Canada the supervisor of fiat-backed stablecoin issuers. Bill C-12 raised maximum AML penalties under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act from CAD $500,000 to CAD $20 million per violation, capped at the greater of $20 million or 3% of global revenue.
Canada's Crypto-Asset Reporting Framework (CARF) — aligned to the OECD standard — took effect January 1, 2026, requiring providers with Canadian users to collect transaction-level data for reporting to the CRA beginning in 2027. Separately, FINTRAC has revoked approximately 47 crypto-linked Money Services Business registrations in 2026, including 23 in a single coordinated action. Custodial platforms handling securities-like crypto assets must now obtain full investment dealer registration and CIRO membership.
What this means for digital asset businesses: The US and Canada are moving toward formalized, tiered frameworks — not outright prohibition. For stablecoin issuers, the GENIUS Act licensing window is open now, and the Treasury rulemaking is the compliance blueprint to follow. For exchanges and custodians in Canada, FINTRAC's enforcement pace signals that informal or non-compliant MSB status is no longer tolerable. The SEC-CFTC taxonomy gives the clearest guidance yet on which assets face securities law treatment.
Sources: