Ontario's Securities Watchdog Offers to Share Stablecoin Oversight With Ottawa

Ontario's securities watchdog isn't ready to hand over the stablecoin file — but it's willing to share. Grant Vingoe, CEO of the Ontario Securities Commission, said on a panel at The Logic Summit that the regulator still views stablecoins as securities, or potentially derivatives, and wants to keep supervising how they're used on crypto trading platforms.

That said, Vingoe doesn't see the point in stacking rules on top of rules. With Ottawa rolling out its Stablecoin Act — a federal framework for non-bank issuers of fiat-backed tokens designed to hold steady against traditional currencies — there's little reason to duplicate requirements that already cover the same risks. As he put it, there's no need to assert jurisdiction when it isn't serving a purpose. Until now, it wasn't clear whether provincial regulators would keep oversight of stablecoins traded on crypto platforms once the act kicks in.

The stance puts Canada out of step with Washington. U.S. lawmakers have passed legislation spelling out that stablecoins are not securities, clearing the way for everyday payments without tripping taxes and investor protection rules under President Donald Trump's administration. Vingoe pushed back on copying that playbook, saying Canada has to weigh its own market structure and its own history of investor losses. He pointed to prediction markets, where Canadian regulators have limited access to certain financial and economic contracts through approved dealers rather than allow the wider slate of bets available south of the border.

Ontario is also negotiating terms to join Canada's two-way securities passport system, which lets market participants work mainly with one provincial regulator when chasing approvals across participating jurisdictions. Ontario would keep the final say on prospectus approvals and exemptions even when another province leads an offering. Vingoe said joining up would streamline approvals, knock down interprovincial barriers and push securities regulation toward a national standard.

On artificial intelligence, the OSC is treading just as carefully. Existing rules demanding human supervision, risk management and controls give the regulator a starting point for how investment firms use AI, including for portfolio selection and client service. Vingoe said the commission is open to adding requirements if those safeguards fall short, but first wants to understand how firms actually deploy the tech before drafting a full code of conduct — his words: we don't want to intervene too early.

The regulator is also leaning harder on technology of its own to fight online investment fraud. Vingoe said OSC tools have helped scrub thousands of fraudulent websites, and the commission is using its powers more aggressively against serious fraud and market manipulation as pressure builds on Canadian authorities over white-collar crime. He said the OSC is looking forward to a close relationship with the federal crime agency once it launches, aiming to take on the perception that Canada goes easy on white-collar crime.