Crypto Regulation Update: New US and Canadian Rules for Digital Assets
October 13, 2026 | ATN Trade & Finance
2026 has produced more concrete crypto regulation than the previous four years combined. Here is where both countries stand, what took effect, and what is still pending.
United States: A Classification Framework Finally Exists
The defining US development of 2026 was the March 17 joint interpretive guidance from the SEC and CFTC — the first time the two agencies have jointly addressed crypto classification. The guidance organizes digital assets into five categories. The most consequential is the digital commodities bucket, which the agencies explicitly populated with names: Bitcoin, Ethereum, Solana, Cardano, XRP, Dogecoin, Polkadot, Avalanche, Chainlink, and Litecoin are all identified as non-securities. The guidance also clarified that staking and proof-of-work mining are not securities transactions, and that redeemable wrapped tokens backed one-for-one do not become securities by virtue of wrapping.
The guidance is interpretive, not a formal rule — courts are not bound by it and it can change without notice-and-comment. But for exchanges, asset managers, and issuers holding positions in the named assets, it substantially reduces the legal uncertainty that had kept institutional capital cautious.
SEC's Proposed Regulation Crypto Assets (August 18)
In August, the SEC proposed Regulation Crypto Assets — a tailored offering framework for what it calls "covered investment contracts." The proposal includes a Startup Exemption allowing raises of up to $5 million over four years with no financial statement requirement, and a tiered Fundraising Exemption modeled on Regulation A permitting annual raises of up to $20 million or $75 million depending on disclosure level. The SEC is also proposing a self-certification route for issuers to formally declare that an investment contract has ceased to exist — a key mechanism for token projects that have reached full decentralization. Comment period is open.
CFTC: Perpetual Bitcoin Futures Now Live
On May 29, the CFTC approved the first cash-settled, perpetual Bitcoin futures contract on a US-designated contract market — a product that had previously existed only on offshore venues. The CFTC paired it with Staff Letter 26-16 addressing 24/7 trading expectations and clarified that perpetuals on other asset classes require advance approval.
Canada: Enforcement, Not Just Rules
Canada has moved from framework-building to active enforcement. FINTRAC has revoked 47 crypto-linked money services business (MSB) registrations so far in 2026, including 23 in a single coordinated action. Penalties have become material: Cryptomus was fined CAD $126 million for failing to report more than 1,000 suspicious transactions, and KuCoin was fined CAD $14 million for operating without proper registration.
The legislative backdrop tightened as well. Bill C-12, which received Royal Assent on March 26, raised the maximum administrative penalty for AML violations from CAD $500,000 to CAD $20 million per violation (or 3% of global revenue). Bill C-15, also passed March 26, created the Stablecoin Act, making the Bank of Canada the supervisor of fiat-backed stablecoin issuers — the first G7 central bank to take direct supervisory authority over stablecoins.
The Crypto Asset Reporting Framework (CARF) took effect January 1, 2026. Crypto service providers with Canadian users must now collect transaction-level data under the OECD standard; the first reports to the Canada Revenue Agency are due in 2027, covering 2026.
What this means for businesses: The regulatory gap between operating legally in the US and Canada versus offshore is closing rapidly — and the enforcement consequences of non-compliance are no longer theoretical. Exchanges and token issuers still in a "wait and see" posture on Canadian MSB registration or US broker-dealer status should be treating both as urgent compliance items, not strategic optionality.
Sources:
- SEC and CFTC Issue Landmark Joint Guidance on Classification of Crypto Assets — Ropes & Gray
- US Crypto Policy Tracker: Regulatory Developments — Latham & Watkins
- Canada's Crypto Regulation in 2026: What the New Rules Mean for Global Operators — Analytics Insight
- Canada Crypto Crackdown 2026: FINTRAC Cancels 47 Crypto Registrations — Coinpedia