Canada’s proposed framework drew inspiration from the Genius Act in the United States, sources say, which was passed into law in July.

Ottawa is preparing to roll out draft stablecoin legislation as soon as December, as Canada seeks to catch up to U.S. moves that have pushed the fiat-backed digital asset into the mainstream.

According to three sources familiar with the matter, the proposed framework, which is expected to be unveiled in the federal budget on Tuesday and tabled before holiday recess, drew significant inspiration from the Genius Act in the United States.

But those who have seen the draft say they worry that the federal government’s legislation will fall short of clearly defining what the digital currency is and who oversees it.

The Globe and Mail is not identifying the

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