Canada Parliament Moves Closer to Banning Crypto Political Donations as Bill C25 Clears Key Vote

Canada's push to bar cryptocurrency from political donations advanced Friday after lawmakers gave Bill C25, the Strong and Free Elections Act, second-reading approval in the House of Commons and sent it to committee for review. In Canada's legislative process, a successful second reading indicates broad agreement with a bill's main principles before detailed clause-by-clause study and potential amendments. Bill C25 would ban political contributions made in crypto, as well as money orders and prepaid payment products, classifying them as funding tools that are difficult to trace. The prohibition would cover the federal political system, including registered parties, electoral district associations, candidates, leadership and nomination contestants, and third parties running election advertising. Under the proposal, recipients would have 30 days to return illegal crypto donations or remit them to the Receiver General, Canada's counterpart to the U.S. Treasury. Kevin Lamoureux, the Liberal parliamentary secretary to the government's House leader, acted as the bill's main defender in debate. His opening remarks focused on AI deepfakes, foreign interference, and administrative penalties; crypto was not mentioned in the official transcript. When asked by a Liberal colleague to choose among three priorities—foreign interference in nominations, political financing transparency, or artificial intelligence—Lamoureux selected AI. Conservative MPs raised questions about political financing rules and how new restrictions would be enforced. The topic did not become a central flashpoint, and Conservatives supported sending the bill to committee. Other opposition parties criticized separate aspects of the legislation without making crypto a core issue. The muted debate also reflects crypto's limited footprint in Canadian federal politics. Elections Canada has technically allowed crypto donations since 2019 by treating them as non-cash, in-kind contributions similar to property. No major federal party has publicly accepted crypto, and recent elections have not disclosed such contributions. Bill C25 revives language from an earlier proposal, Bill C65, which included the same crypto provisions but died when Parliament was prorogued in January 2025. Canada's Chief Electoral Officer first urged tighter oversight of crypto donations in 2022, then shifted in November 2024 to recommending an outright ban, citing pseudo-anonymity and the difficulty of verifying donors' identities. International approaches diverge. In the United States, the Federal Election Commission has allowed crypto donations since 2014. The United Kingdom moved the other way earlier this year, passing a ban on crypto political donations amid concerns digital assets could obscure the source of foreign funds in British politics.