Crypto Regulation Update: New US and Canadian Rules for Digital Assets
October 22, 2026 | ATN Trade & Finance
The regulatory architecture for digital assets in North America is being rebuilt in real time. In the United States, the SEC has just closed its comment window on the most comprehensive crypto offering framework since the Securities Act itself, while the GENIUS Act's stablecoin rules race toward a January 2027 deadline. In Canada, a new custody framework, a Bank of Canada stablecoin mandate, and a wave of FINTRAC enforcement actions have fundamentally changed the operating landscape for crypto businesses serving Canadian clients. Here is where each major development stands.
US: The SEC's "Regulation Crypto Assets"
The biggest structural development on the US side is the SEC's proposed Regulation Crypto Assets (File No. S7-2026-27), published in the Federal Register on August 21, 2026. The comment period closed October 20 — two days ago — making this week a transition point from public input to rulemaking.
The proposal creates a tiered exemption framework for digital asset offerings. A startup exemption (Rule 200) permits offerings of up to $5 million over four years for early-stage projects, with notice and updating requirements. A fundraising exemption (Rules 300–307), modeled on Regulation A, has two tiers: Tier 1 at up to $20 million per 12 months and Tier 2 at up to $75 million, with audited financials required for Tier 2. Both carry ongoing reporting obligations. A safe harbor (Rule 400) lets issuers exit the investment contract definition after their essential managerial efforts are complete, documented on a new Form TR. Rule 500 preempts state securities registration requirements for qualified purchasers, though states retain antifraud authority.
Separately, on October 1, the SEC proposed rules governing how registered investment advisers, funds, and business development companies may custody crypto assets — a significant gap in the existing framework. The proposal would allow state-chartered trust companies to serve as custodians and permit self-custody of certain assets under defined conditions. The comment period runs 60 days from Federal Register publication.
On September 17, the SEC issued a five-year conditional exemption allowing new venues to trade tokenized US equities on public blockchains, with retail investor access permitted. Chairman Paul Atkins described it as a bridge to "durable rulemaking" — meaning a permanent framework is still to come.
US: Stablecoins on a Deadline
The GENIUS Act (Public Law 119-27), signed July 18, 2025, takes effect January 18, 2027, or 120 days after regulators finalize implementing rules — whichever comes first. As of mid-October, the OCC, Federal Reserve, and FDIC rules are still in proposal stage, with the OCC indicating a final rule before month-end. The Act requires 1:1 backing with high-quality liquid assets — cash and short-term Treasuries — held separately from operating funds. Banks may issue under existing charters. Non-bank issuers need a federal license or a qualifying state regime; issuers with more than $10 billion outstanding must move to federal oversight. Monthly reserve reports and AML/KYC programs are mandatory for all. Circle received final OCC approval in July 2026 for a national trust bank. Tether launched USAT through Anchorage Digital Bank in January 2026 for the US market, while USDT continues to serve markets outside it.
US: CLARITY Act Stalls; CFTC Moves Forward
The CLARITY Act — the legislation that would have resolved the securities-versus-commodity classification of digital assets at the statutory level — failed a Senate cloture vote on September 15, 2026 (49-50, well short of the 60 needed). Sticking points included ethics rules for federal officials holding crypto and the treatment of stablecoin yield. House Financial Services Chair French Hill is holding out hope for a lame-duck session pass, but the bill's prospects are widely considered poor for this Congress. That means securities-versus-commodity classification remains in the hands of regulators.
The CFTC moved into that space on October 5, issuing an advance notice of proposed rulemaking on leveraged and margined retail crypto commodity transactions (dubbed Regulation CTX and Regulation CAM). Published in the Federal Register on October 13, comments are due December 14, 2026. It is a pre-proposal — not yet a rule — but it signals the CFTC is preparing to assert its jurisdiction over retail crypto products formally.
Canada: CIRO's Custody Framework
The Canadian Investment Regulatory Organization issued its Digital Asset Custody Framework on February 3, 2026, effective immediately. The framework applies to CIRO Dealer Members operating crypto-asset trading platforms and covers all digital assets — cryptocurrencies, stablecoins, and tokenized assets. Its tiered, risk-based structure sets minimum standards for how client assets are held and requires platforms to spread custody arrangements across providers with documented risk controls. CIRO said explicitly that the framework targets the failure modes seen in past crypto collapses: hacking, fraud, weak governance, and custodian insolvency. Platforms operating as restricted dealers under the earlier interim regime must now be registered as investment dealers and hold full CIRO membership to serve retail Canadians.
Canada: Stablecoin Act and CARF
Bill C-15 (Budget Implementation Act), which received Royal Assent on March 26, 2026, enacted Canada's Stablecoin Act, designating the Bank of Canada as the prudential supervisor of fiat-backed stablecoin issuers. This places stablecoin oversight at the central bank level — a significant jurisdictional choice — while the specific supervisory framework is still being developed.
The Crypto-Asset Reporting Framework (CARF) went live on January 1, 2026, requiring crypto service providers with Canadian users to collect OECD-standard transaction-level data. First reports to the Canada Revenue Agency are due in 2027, covering calendar year 2026. That deadline is now less than 15 months away for platforms that have not begun building their reporting infrastructure.
Canada: Enforcement
FINTRAC has revoked 47 crypto-linked Money Services Business registrations in 2026, including 23 in a single coordinated action. The enforcement backdrop is harder than it was: Bill C-12 (Royal Assent March 26) raised the maximum administrative monetary penalty for violations of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act from CAD 500,000 to CAD 20 million per violation — or 3% of global revenue, whichever is greater. For a mid-sized exchange, a single finding is now existentially significant.
What this means: Both countries are moving from enforcement-first to rules-first approaches, but the rules are not simple. For US businesses, the two immediate calendar items are the OCC's GENIUS Act final rule (expected this month) and the effective date of January 18, 2027 — roughly 88 days away. For Canadian businesses, the CARF reporting deadline and CIRO full-registration requirement are already live obligations, not future risks. Companies operating cross-border platforms need to track both regulatory timelines simultaneously: US stablecoin licensing requirements and Canadian AML/custody standards are now distinct compliance tracks with distinct consequences for missing them.
Sources:
- SEC Seeks Comments on Proposed Crypto Asset Offering Rules by October 20, 2026 — Mondaq
- Crypto Regulation News: Big Changes in October 2026 — Crypto Infrastructure
- Crypto Regulation 2026: GENIUS Act & New SEC Rules — Old Men New Money
- SEC Custody Proposal 2026-100 — SEC.gov
- CIRO Issues Guidance on Digital Asset Custody for Crypto-Asset Trading Platforms — CIRO
- Canada's Crypto Regulation in 2026: What the New Rules Mean for Global Operators — Analytics Insight