Law of Code #167 - Is Canada Ready to Regulate Stablecoins?
In this episode, Jacob Robinson speaks with Odun Olowookere about Canada’s proposed Stablecoin Act, the constitutional and regulatory challenges it raises, and why critics argue it may reduce clarity rather than enhance it.
Odun Olowookere is a legal scholar at York University and the co-author of a submission to Canada’s House of Commons critiquing the draft Stablecoin Act, alongside Darrell Duffie of Stanford University and Andreas Veneris of the University of Toronto.
Timestamps:
➡️ 0:05 — Why Canada’s draft Stablecoin Act has drawn concern
➡️ 2:13 — The Act’s stated goal: monetary sovereignty and dollarization risk
➡️ 3:16 — Why stablecoins are not explicitly defined as payment instruments
➡️ 5:20 — How Canada’s constitutional structure complicates stablecoin regulation
➡️ 8:41 — Canada’s blanket prohibition on interest and how it differs from GENIUS
➡️ 9:46 — Expanded “payment function” language and why it alarms critics
➡️ 10:33 — How wallets, validators, and even users could be swept into regulation
➡️ 16:14 — Data security obligations and the Bank of Canada’s technical capacity
➡️ 18:33 — Prudential regulation concerns and undefined reserve requirements
➡️ 21:48 — Is Canada regulating stablecoins too early?
Sponsor: This episode is brought to you by the Decentralization Research Center (DRC), a nonprofit think tank advocating for decentralization in emerging technologies. Learn more at thedrcenter.org.
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