Canada’s recent election has sparked fresh debate about the future of cryptocurrency in the country. With the Liberal Party securing another term under Prime Minister Mark Carney, many in the crypto space are asking: Is there still hope for Canada’s digital asset industry?
Crypto: A Dividing Line Between Canada’s Political Parties
In recent years, cryptocurrency has become a key issue dividing Canada’s Liberals and Conservatives.
The Conservative Party, led by Pierre Poilievre, has long supported digital assets as a way to protect Canadians from inflation. Back in 2022, Conservatives pushed crypto as an alternative to what they called irresponsible Liberal economic policies that led to soaring inflation and skyrocketing housing costs.
On the other side, Liberals have taken a much more cautious approach. They often criticize crypto for being too volatile, risky, and speculative — not suitable for the average Canadian investor. Many crypto assets are classified as securities in Canada, making it difficult for blockchain businesses to operate without jumping through regulatory hoops.
The 2022 Push for Crypto Reform
One major attempt at reform came in 2022 when Conservative MP Michelle Rempel Garner introduced Bill C-249, also known as the Canadian Cryptocurrency Initiative. The bill aimed to create open dialogue between lawmakers and crypto entrepreneurs and build a legal framework that supports innovation.
Although the bill was praised by industry leaders and the Conservative base, it failed to pass its second reading in Parliament. The message was clear: the Liberals weren’t ready to open the door for crypto just yet.
Carney’s Win: What It Means for Crypto
The April 2025 election brought some surprises. While younger voters leaned Conservative, older Canadians — particularly concerned about former U.S. President Donald Trump’s aggressive stance toward Canada — stuck with the Liberals. Ultimately, this older voting bloc helped Mark Carney secure victory.
Carney, a former Bank of Canada and Bank of England governor, has never been a fan of cryptocurrency. He’s publicly stated that Bitcoin is too slow and volatile to serve as a reliable means of payment or a store of value. Instead, Carney and the Liberal Party are backing central bank digital currencies (CBDCs), which align more closely with European-style financial oversight.
Meanwhile, the U.S., under Trump, has scrapped its CBDC plans over privacy concerns and focused instead on supporting USD-pegged stablecoins, which are seen as strengthening the dollar’s dominance.
Crypto’s Uphill Battle in Canada
Despite growing global adoption and a surge of crypto innovation in places like the U.S. and Southeast Asia, Canada’s crypto sector is likely to face tough times ahead.
The Liberal government remains skeptical of digital assets. Regulatory frameworks continue to be restrictive. And with Carney at the helm, there’s little indication that this will change over the next four years.
Unless a major shift in political power or global pressure forces a rethink, Canadian crypto advocates and startups may have no choice but to build abroad — or wait for better days.
Canada’s crypto future hangs in the balance after the 2025 election. While Conservatives champion blockchain innovation and financial freedom, the re-elected Liberal government is doubling down on regulatory control and centralized financial tools like CBDCs.
For now, the road ahead looks rough for Canada’s crypto community — but not without hope. With growing youth support for pro-crypto policies and global competition heating up, the pressure for reform may just be a matter of time.
