Trudeau Resigns as Prime Minister, Potentially Shifting Canada’s Crypto Landscape
Canadian Prime Minister Justin Trudeau announced his resignation, which may lead to a government more favorable to cryptocurrencies. Trudeau cited "internal battles" as the reason for stepping down after 11 years as leader of the Liberal Party and prime minister since 2015. Critics within the crypto community condemned government sanctions on digital wallets during the 2022 Freedom Convoy protests.
The freezing of crypto accounts affected not only Canada but also became a significant point for U.S. Republican lawmakers during the 2024 elections, highlighting concerns about central bank digital currencies (CBDCs) potentially intruding into crypto transactions.
With a general election in Canada approaching by October, Conservative Party leader Pierre Poilievre holds a polling advantage and has gained support among some U.S. Republicans. While Poilievre has previously supported digital assets, he has remained relatively quiet on the issue recently.
In Canada, securities regulation is managed at the provincial level, lacking a national regulator like the U.S. Securities and Exchange Commission. Therefore, the influence of the new Liberal Party leader or Poilievre on crypto regulations may be limited. The Canadian Securities Administration (CSA), an umbrella organization of provincial regulators, will play a more significant role in shaping Canada's crypto landscape.
Mark Carney, former governor of the Bank of England and the Bank of Canada, is a potential candidate to replace Trudeau. He has expressed views on crypto and stablecoins, emphasizing that highly regulated stablecoins could succeed, raising questions about their differentiation from CBDCs.
