Despite a significant opportunity to become a global leader in the burgeoning crypto space, Canada’s approach to digital asset regulation remains stagnant. The recent federal election failed to address crypto policy, leaving a crucial gap in national strategy and jeopardizing the nation’s potential for economic growth. 2025 saw Canadian venture capital investments plummet to pandemic levels, highlighting an alarming trend of missed opportunities. This decline underscores the urgent need for decisive action from the government to attract global innovation and competitiveness. Canada risks being relegated as a bystander in this rapidly expanding market. Expert voices have highlighted the lack of clear regulatory clarity and political will to support digital businesses in key areas such as blockchain technology. Early-stage investments are already facing strain, indicating a concerning shift in investor sentiment. The absence of robust government policies is impacting Canada’s ability to attract talent and foster economic growth in the crypto space. For instance, top institutions like Vector Institute in Toronto struggle to witness the success of their homegrown companies due to limited access to capital and an unclear regulatory landscape. The recent appointment of Evan Solomon as minister for AI and digital innovation offers a glimmer of hope, but it’s crucial to implement broader policies that facilitate progress. Canada must shift its approach by focusing on key priority areas such as addressing the brain drain of highly-skilled tech professionals who are opting for work opportunities abroad. These individuals represent valuable assets that Canada needs to retain. The government should explore innovative tax incentives for attracting high-value tech talent and provide relief for businesses working in technology sectors. The potential of stablecoins remains largely untapped, despite their transformative capabilities in payments, financial transactions, and market access. However, regulatory roadblocks created by a lack of clear policies are hindering Canada’s ability to harness this innovation. It’s time for the government to move beyond its disinterest towards crypto. The Canadian dollar can benefit greatly from embracing stablecoins, unlocking new global markets with a locally-supported cryptocurrency. Furthermore, a lack of adequate banking services for crypto businesses remains a significant barrier. This is hindering their ability to operate and contribute to the wider economy. Canada’s financial institutions need to update their approach and adapt to this growing sector. The current regulatory framework needs to be revised to support responsible innovation within the crypto space, paving the way for increased investment, job creation, and economic growth.