Trudeau's Departure in Canada Opens Possibilities for Crypto

Trudeau's Departure in Canada Opens Possibilities for Crypto

Canadian Prime Minister Justin Trudeau announced on Monday that he will step down from both his position as party leader and prime minister after nearly a decade of leadership. This decision, driven by "internal battles" within his party, may create an opportunity for a government less resistant to digital assets. 

Trudeau, who has served as the head of Canada’s government since 2015, cited personal reasons for his resignation, stating he could no longer carry the Liberal Party's banner into the next election. His departure could potentially pave the way for a new leadership that might be more favorable toward digital assets, a stark contrast to Trudeau's past resistance to crypto.

Trudeau's tenure included controversial actions against digital assets, particularly during the 2022 Freedom Convoy protests when the Canadian government froze the crypto accounts of participants. This move has left a significant mark on the crypto community, drawing criticism from both within Canada and abroad. U.S. Republican lawmakers seized on this issue during the 2024 elections, warning of the risks of central bank digital currencies (CBDCs) potentially allowing governments to interfere with crypto transactions.

With Canada's general election approaching in October 2025, polling shows Conservative Party leader Pierre Poilievre leading in popularity. Poilievre has long been a supporter of digital assets, though his stance on the issue has become more muted recently. However, it’s important to note that in Canada, securities regulation falls under provincial jurisdiction, meaning the new prime minister, whether from the Liberal or Conservative Party, may have limited influence on digital asset regulation.

Instead, Canada’s cryptocurrency regulatory landscape is largely shaped by the Canadian Securities Administrators (CSA), a group of provincial regulators, rather than a single national authority like the U.S. Securities and Exchange Commission (SEC). This decentralized approach to regulation means that any changes in crypto policy will likely depend on the decisions made by provincial bodies rather than the federal government alone.

Among the potential candidates to replace Trudeau is Mark Carney, a former governor of the Bank of Canada and the Bank of England, who has previously expressed strong opinions on the role of stablecoins in the financial system. Although Carney has not formally announced his candidacy, his views on cryptocurrency, particularly on highly regulated stablecoins, could significantly influence Canada's future stance on digital assets. Carney has suggested that if stablecoins are to succeed, they must be strictly regulated, a stance that could make them indistinguishable from CBDCs.

As the political landscape shifts, Canada’s approach to crypto regulation remains uncertain, with the provinces holding considerable sway over the future of digital assets in the country.