As Canada approaches its first federal budget under Prime Minister Mark Carney, a central question looms: will this government continue the push toward financial services transformation where the previous Parliament left off—or chart a different course?

With the federal budget now slated for November 4, expectations are mounting among industry watchers that long-discussed reforms in open banking, digital assets, AML, and privacy could now move closer to the finish line. For businesses across financial services and fintech, the budget will signal not only priorities for the year ahead, but also the pace and direction of Canada's evolving regulatory landscape.

Below are five things we'll be watching closely in November.

1. Consumer-driven finance: Ready for launch?

Canada's consumer-driven finance ("open banking") legislation may finally get a green light, with a rollout commencing in 2026. We understand that the second half of the open banking legislation has been drafted for some time and may finally be released as part of this government's first federal budget. Secure data-sharing under Canada's open banking regime will transform product development, client acquisition, and partnerships across the fintech ecosystem. Whether crypto and digital assets will be contemplated or snubbed in the consumer-driven finance regime remains an open issue.

2. A framework for stablecoin integration

In June, it was reported that Peter Routledge, Canada's Superintendent of Financial Institutions, and the federal Department of Finance, were in the process of developing a legislative framework to help the country keep pace with stablecoin innovation abroad. Although no timeline has been provided, it is understood that OSFI and the Department of Finance are working closely with the Bank of Canada, in consultation with certain industry participants, to shape constructive federal regulation.

While stringent rules could constrain the scope for stablecoin innovation, a coherent framework may also create opportunities, both for regulated entities and fintech companies, to deliver trusted alternatives in a collaborative way, furthering wider adoption of crypto and digital assets across the country. We expect only limited references to stablecoins in the budget, but emerging policy conversations are trending toward progressive integration of stablecoins within Canada's financial system.

3. Tightening Canada's AML Regime

In June 2025, Bill C-2 (the Strong Borders Act) proposed sweeping anti-money laundering ("AML") reforms under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. These included mandatory FINTRAC registration for all reporting entities, expanded sector coverage, and sharply increased penalties for non-compliance. The bill completed first reading and was at second reading in the House of Commons prior to Parliament's summer break. The government is likely to highlight AML modernization, potentially with enhanced digital reporting, cross-border transparency, and AI-driven monitoring.

4. A second chance for privacy reform

Bill C-27 (the Digital Charter Implementation Act) proposed significant reforms to private-sector privacy law by modernizing how organizations handle personal information. While the Bill itself died on the Order Paper in January, its core reforms are expected to be revived. Canadians can anticipate a renewed push toward modernized privacy protections and stronger enforcement mechanisms.

5. Bridging innovation and regulation

In general, we expect a strong emphasis on balancing innovation with systemic stability. While Carney has expressed openness to new technologies, his regulatory approach will come into sharper focus only once the federal budget is delivered. In the meantime, those operating in this space must position themselves to seize fintech opportunities while adapting to evolving compliance and governance demands

What's next

Stay tuned for our detailed analysis immediately following the Federal Budget, with a focus on the regulatory and technology measures that matter most to financial services and fintech clients.

To learn more or discuss how these ideas could support your business or policy objectives, contact one of the authors or reach out to a member of our Financial Services and Technology (FSxT) Group.