Trump’s election campaign focused on crypto, and already in his first 100 days in office, we’ve seen progress in support of the crypto industry. Canada held an election on Monday — can we expect the same focus on crypto in other regions?

In today’s Crypto for Advisors, Morva Rohani from the Canadian Web3 Council explains what this political shift means for advisors and why it’s important to align crypto with financial system upgrades.

Then, Vincent Kadar from Polymath answers questions about global trends in Ask an Expert.

– Sarah Morton

Canada’s Election — Crypto Must Align With Financial Modernization

Canadians have voted. While digital assets are not a priority in the new government’s agenda, there is an opportunity to position crypto as part of Canada’s broader financial modernization efforts. Whether the Liberal Party ultimately forms a narrow majority or a strengthened minority, the direction is clear. Stability is fragile, and political capital will be focused on economic resilience.

That focus has only sharpened with the return to office of President Trump, whose economic strategy includes both sweeping tariffs on Canadian goods and open support for crypto infrastructure in the United States. Against that backdrop, Canada’s digital asset sector must pivot its message.

Financial innovation will move — but cautiously

Canadian Prime Minister Mark Carney’s background as a central banker points toward a focus on systemic risk, monetary policy stability and prudent innovation. Crypto will not be a top agenda item, but stablecoins, payments modernization and blockchain-based settlement infrastructure could find a place under a broader modernization umbrella.

This means preparing for a few emerging trends:

• Efforts to regulate stablecoins where they improve payment speed and security
• A potential push for custody reforms that would expand client access to compliant digital asset solutions
• A gradual move toward clearer regulatory expectations, with an emphasis on due diligence and market integrity

Crypto has the potential to be treated as financial infrastructure rather than a speculative outlier, but only if the industry advocates strategically and positions itself as part of Canada’s economic modernization.

Global pressures are accelerating the shift

While Canada moves cautiously, other markets are moving fast. The European Union’s MiCA framework is now live. The United Kingdom is advancing stablecoin licensing. In the United States, President Trump’s return has brought an aggressive push for crypto as part of his economic strategy, alongside sweeping tariffs on Canadian exports. This combination has forced economic modernization to the top of the agenda in Ottawa.

Digital assets are increasingly being used as economic tools, not just financial experiments. Trump’s posture has reframed crypto as part of national competitiveness, and other jurisdictions are responding. For Canada to remain relevant, integrating blockchain and digital payments into the country’s financial infrastructure is no longer just an innovation play; it is becoming a strategic necessity. That is the case the industry will need to make in Ottawa.

Here’s an overview of where key crypto initiatives in various jurisdictions currently stand:

What comes next: a strategic pivot for industry and advisors

Canada’s political landscape is shifting. For the digital asset industry to make meaningful progress, it must reposition crypto as essential financial infrastructure. The focus needs to be on resilience, modernization and economic competitiveness, not speculation. Advocacy efforts must tie digital assets to broader national priorities like upgrading payment systems, enhancing financial stability and maintaining Canada’s economic relevance in a changing global economy.

This approach matters for advisors and investors as well. As regulatory frameworks evolve, demand for compliant and diversified digital asset exposure will only grow. Those who understand how crypto fits into trusted financial structures, and who frame it as part of a broader modernization of financial services, will be better positioned to capture new opportunities.

Those who adopt this mindset early, across both the industry and advisory sectors, will not only help shape Canada’s next generation of financial regulation but will also be best placed to benefit from the growth and innovation that follow.

— Morva Rohani, Executive Director, Canadian Web3 Council

Ask an Expert

Q. How have the recent U.S. elections changed the crypto regulatory landscape?

A. The 2024 U.S. elections ushered in a major shift in crypto regulation. Over the last three months, the Trump administration has made several significant moves in line with the promises the President made to the industry. This includes an executive order to establish a Bitcoin Strategic Reserve, the appointment of a Crypto Czar, the creation of a crypto task force, and, roundtable discussions on topics such as taxonomy, tokenized securities, custody, registration and DeFi. Even key regulatory bodies have rescinded their guidance that discouraged banks’ involvement in crypto.

All of these moves have been in an attempt to position the U.S. as a leader in the digital asset space. Given that the U.S. crypto market is the largest and most influential in the world, these positive developments are likely to help drive crypto regulations globally.

Overall, for the first time, we are getting a crypto-friendly regulatory environment, though more clarity and a proper framework will take time to establish.

Q. How are fragmented political landscapes around the world affecting stablecoin development and adoption?

A. One of the best use cases of crypto, stablecoins, has become a significant part of the financial system and naturally attracted regulatory scrutiny. But the global regulatory environment remains fragmented, creating uncertainty.

In the U.S., authorities are actively working on stablecoin regulations. However, the E.U. and Asia are not keen on U.S.-pegged stablecoins gaining widespread adoption locally, seeing them as a potential threat to their own monetary sovereignty. Stablecoins, after all, undermine local currencies and enable capital flight, driving countries to digital fiat, which further complicates the matter.

But with the world moving towards a digital financial system, the benefits of stablecoins — including financial inclusion, faster and cheaper cross-border payments, enabling DeFi participation and even serving as a hedge against inflation — simply can’t be ignored. This means that countries must recognize the growing popularity of and demand for stablecoins, and embrace innovation, or risk being left behind.

— Vincent Kadar, CEO, Polymath

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