Canada passes Budget 2025 with stablecoin, defence changes
Late last week, Canada's Bill C-15 received Royal Assent, giving effect to a broad set of Budget 2025 measures.
The law covers housing, tax policy, transport, research support and financial regulation. It also introduces a voluntary early retirement incentive for parts of the federal workforce.
The Act also delivers the Clean Electricity investment tax credit and adjusts other clean economy tax credits tied to clean technologies, manufacturing, and carbon capture, utilisation and storage.
Financial Sector
A substantial part of the law focuses on banking and consumer finance. Banks will be required to maintain policies and procedures to detect and prevent consumer-targeting fraud, mitigate its effects, collect and report fraud data to the Financial Consumer Agency of Canada, and allow customers to disable certain account features and adjust maximum transaction limits.
The legislation also changes access to funds deposited by cheque, with the aim of giving consumers quicker access to their money. The move is intended to reduce reliance on short-term borrowing products such as payday loans and overdraft protection, particularly for lower-income Canadians and seniors.
Credit unions are set to gain easier access to the federal framework, a step intended to help them expand. The Act also completes the legislative framework for consumer-driven banking, allowing consumers and businesses to share financial data securely with third-party providers within a regulated system.
Digital assets are also covered. Bill C-15 creates a regulated framework for stablecoins, aimed at supporting trust in digital payments.
Beyond the Act itself, the government has outlined a wider package of Budget 2025 initiatives. These include the Build Communities Strong Fund for local infrastructure, the First and Last Mile Fund for mining and logistics projects linked to critical minerals, and a push to meet NATO's two per cent of GDP defence spending target.
That broader agenda also includes a new Defence Investment Agency, a Defence Industrial Strategy, improved compensation for personnel, and the launch of BOREALIS, a new Bureau of Research, Engineering and Advanced Leadership in Innovation and Science.
Trade disruption is another focus. More than CAD $25 billion has been announced to support workers and businesses affected by US tariffs and related disruption, including a CAD $5 billion Strategic Response Fund, liquidity support, extended Employment Insurance income support, an expanded Work-Sharing program, and training for more than 50,000 workers.
Additional plans include nearly CAD $186 million over five years for a Buy Canadian procurement policy, the Trade Diversification Corridors Fund for ports, rail and roads, and a CAD $1 billion Arctic Infrastructure Fund. The government is also moving ahead with a new Financial Crimes Agency, pre-filled tax returns for low-income Canadians from the 2026 tax year, and a new Canada Groceries and Essentials Benefit to replace the GST/HST credit.
"By passing the Budget Implementation Act, we are delivering on our commitment to invest in Canada's future and build an economy that is strong and resilient to global shocks. These are bold investments in our long-term prosperity - driving economic growth, modernizing our tax and financial systems, and creating a more efficient government - helping us build the strongest economy in the G7," said François-Philippe Champagne, Minister of Finance and National Revenue.