The Financial Post reports in its Tuesday, Oct. 28, edition that sources say Canada is consulting on rules for stablecoins and may announce a major update in the federal budget next week. A Bloomberg dispatch to the Post reports that sources say Canada is working toward addressing the issue in budget documents that will be unveiled on Nov. 4. Today, stablecoins are typically issued by non-bank private entities such as Tether Holdings and Circle Internet Group, and they are sometimes backed by other liquid assets such as U.S. Treasury bills. In July, the United States passed the Genius Act, which allows financial regulators to police stablecoin issuers and how they manage reserves. John Ruffolo, vice-chair of the Council of Canadian Innovators, has urged Ottawa to act quickly to avoid losing Canadian capital to the U.S. He warns that without regulations supporting Canadian-dollar stablecoins, savers may choose U.S. stablecoins for international transfers. That, in turn, would hit demand for Canadian bonds, potentially pushing interest rates up as well as loosening the Bank of Canada's grip on the money supply and ceding control of capital held in U.S. dollar-backed stablecoins to American regulators, he argued.