Peter Routledge, the superintendent of Canada’s financial regulator, told reporters Thursday that the federal finance ministry is currently working on a legislative framework so it “keeps up with the innovation both [in] the United States and in other countries.” The legislation will provide clarity on how stablecoin issuances will look in Canada. (The Logic)

Talking point: Stablecoins are crypto assets that are pegged to the dollar or other assets that companies like Shopify are using as a payment option. Routledge likened stablecoins to the regulation of banks or credit unions or trust companies, adding that OSFI is “quite prepared—with the right legislative framework—to regulate and supervise that particular innovation in a constructive way.” Meanwhile, OSFI is holding the domestic stability buffer, or the percentage of assets that major banks need to set aside to withstand financial stress, at 3.5 per cent.