Canada’s cryptocurrency sector is drawing inspiration from the United States following the transformative impact of digital assets on the recent U.S. elections. With lessons learned from their southern neighbor, Canadian crypto firms are strategizing to elevate the industry’s profile in the country’s political landscape.
In November, Donald Trump’s victory in the U.S. presidential election marked a turning point for the crypto industry. Once a skeptic, Trump embraced digital assets during his campaign, contributing to his success. Pro-crypto candidates also triumphed in various elections, buoyed by the industry’s staggering US$135 million in campaign contributions. This support was spearheaded by Crypto’s Fairshake political action committee and backed by major players such as Coinbase, Ripple Labs, and Andreessen Horowitz.
Trump’s administration has since embraced crypto advocates, and the industry has celebrated significant milestones. Bitcoin’s value surged by over 40% following the election, breaking past US$100,000 for the first time.
Canada’s Unique Challenges
Unlike the United States, where corporate donations significantly influence elections, Canada’s political system imposes stricter regulations. Corporate donations are prohibited, and individual contributions for the 2025 elections are capped at $1,750 per political party and $1,750 collectively for all candidates within a party.
Despite these limitations, Canadian crypto firms remain optimistic. “Conversations are easier to start today than they were over a month ago, and I think that trend will likely continue regardless of the donations,” said Dean Skurka, CEO of Toronto-based WonderFi Technologies Inc.
Advocacy Efforts
Advocacy organization Stand With Crypto, which played a pivotal role in the U.S. elections, expanded its reach to Canada in mid-2023. Unlike its American counterpart, the Canadian branch is not endorsing candidates. Instead, it focuses on building grassroots support among crypto advocates and encouraging dialogue with Canadian citizens and Members of Parliament.
Stand With Crypto’s approach highlights the growing effort to establish crypto as a significant topic in Canadian politics. While the industry has yet to achieve the same level of influence as in the United States, the groundwork is being laid for broader recognition.
Canada’s Crypto Legacy
Canada holds a notable position in cryptocurrency history. Ethereum, the world’s second-largest cryptocurrency, originated in Canada, and the country was home to the first bitcoin exchange-traded funds.
However, regulatory challenges remain. In December 2023, the Canadian Securities Administrators introduced new rules for crypto asset trading platforms. These regulations, including restrictions on stablecoins and mandatory pre-registration undertakings, led to several platforms exiting the Canadian market. Binance, Bybit, OKX, and Gemini have all ceased operations in Canada due to the stringent requirements.
Despite these hurdles, industry leaders remain hopeful. “Crypto is here to stay, and the U.S. elections cemented crypto in the history books and paved a path for every country around the world to start thinking deeply about how they will advance their own personal strategies,” said Coinbase Canada CEO Matheson.
As Canada’s crypto industry looks to the future, its leaders aim to balance regulatory compliance with the pursuit of growth, taking cues from the successes achieved south of the border.
