[Canada Plans to Expand Stablecoin Regulation, Requiring Banks to Issue Stablecoins Through Non-Financial Subsidiaries] The Canadian government's 2026 federal budget proposes that federally regulated financial institutions must issue stablecoins through non-financial institution subsidiaries regulated by the Stablecoin Act, and will also include foreign financial institutions not subject to Canadian prudential supervision within the scope of the law. The government will study consumer protection measures in the event of bankruptcy of stablecoin issuers or custodians. Canada plans to modernize its payment system and combat illegal cryptocurrency ATMs and financial crime through legislation. These stablecoin measures are follow-up regulatory arrangements proposed in the budget.