The recent Canadian election has cast doubt over the future of the country’s crypto sector. While the Conservative Party promoted cryptocurrencies as a tool for economic freedom and inflation resistance, the Liberal Party — now firmly in control — remains skeptical, favoring central bank digital currencies (CBDCs) over decentralized assets.
Conservatives Backed Crypto, Liberals Pushed Back
In 2022, Conservative Leader Pierre Poilievre called for crypto to be treated as a commodity, not a security, and encouraged Canadians to use it to opt out of inflation. But Liberal leaders, including then-Finance Minister Chrystia Freeland, attacked the idea after the 2021 bull market turned into a brutal downturn. She accused Poilievre of offering “reckless advice” that left many Canadians financially harmed.
Despite a push for pro-crypto legislation like MP Michelle Rempel Garner’s Bill C-249, which aimed to establish a clearer legal framework for digital assets, the bill failed to pass its second reading. Conservatives framed Canada’s tough stance as a barrier driving away innovation and talent.
The 2025 Election Results
The April 2025 election was shaped by both domestic issues and international politics. Former U.S. President Donald Trump’s controversial comments about turning Canada into “the 51st state” energized older voters, who rallied behind the Liberals to defend national sovereignty. Meanwhile, younger voters leaned Conservative, drawn to promises of economic reform and pro-crypto policies.
The election ended with Liberal leader Mark Carney—former central banker—securing victory. Carney is known for his skepticism toward crypto, citing Bitcoin’s scalability issues and volatility. He has long promoted the development of government-backed CBDCs over privately issued stablecoins.
What’s Next for Crypto in Canada?
With Carney now in charge, hopes for major crypto-friendly reforms have dimmed. The Liberals have repeatedly aligned themselves with European-style financial models, which emphasize centralized control. Their skepticism of stablecoins — viewed as a U.S. dollar export tool — and preference for CBDCs suggest a continued regulatory clampdown on decentralized crypto projects.
Crypto firms in Canada now face four years of potential headwinds. Unless bipartisan support for clearer crypto regulation emerges, the country risks falling further behind global innovation hubs.
