SoVote

Bill C-249

44th Parl. 1st Sess.

November 23, 2022

Summary: Bill C-249, also known as the Encouraging the Growth of the Cryptoasset Sector Act, aims to develop a national framework to support and promote the cryptoasset sector in Canada. The Minister of Finance will be responsible for creating this framework, which will focus on reducing barriers to entry into the sector, protecting individuals working in the sector, and minimizing administrative burdens. The Minister will actively consult with designated persons from the provinces and territories who have experience in the cryptoasset sector. The framework will be developed based on these consultations and will be open to public submissions and comments. Within three years of the Act coming into force, the Minister will prepare a report outlining the framework, which will be tabled in Parliament and made available to the public. It's important to note that this Act does not require provinces to take specific actions that fall within

Steelman Argument: The Encouraging the Growth of the Cryptoasset Sector Act (Bill C-249) is necessary and beneficial for Canada. The rapid growth of digital assets, known as cryptoassets, presents significant economic and innovative potential for the country. By developing a national framework to encourage the growth of the cryptoasset sector, the Act aims to lower barriers to entry, protect those working in the sector, and minimize administrative burdens. One key benefit of this Act is that it recognizes the importance of advancing technology and embraces the potential of digital assets. By classifying and defining cryptoassets, the Act provides clarity and avoids ambiguity in their treatment within the financial services industry. This ensures that investors and entrepreneurs have a clear understanding of the regulatory environment, fostering confidence, and encouraging innovation. The Act also highlights the need for consultation

A steelman argument opposing this bill could be: While the growth of the cryptoasset sector may have potential economic benefits, it is important to consider the risks and potential negative impacts associated with it. Cryptoassets are highly volatile and can result in significant financial losses for individuals who invest in them without fully understanding the risks involved. Encouraging the growth of this sector without adequate regulation and oversight could lead to increased instances of fraud, money laundering, and other illegal activities. The government should prioritize protecting Canadian consumers and investors by implementing strict regulations and ensuring that the sector operates within the existing legal framework. Rushing to develop a national framework without fully considering the potential risks could lead to unintended consequences and harm the financial stability of individuals and the overall economy. Instead, th