Canada’s proposed ban on crypto political donations cleared a major hurdle Friday, moving a step closer to law after winning cross-party backing in the House of Commons. What passed: Bill C-25, formally the Strong and Free Elections Act, got second reading and was sent to committee for detailed review — a parliamentary signal that lawmakers broadly accept a bill’s core principles before considering amendments. The measure would bar political contributions in cryptocurrencies, alongside money orders and prepaid payment products, on the grounds that those methods can be hard to trace. Who and what would be covered: The ban would apply across federal politics — registered parties, electoral district associations, candidates, leadership and nomination contestants, and third parties that run election advertising. Recipients who inadvertently receive prohibited crypto donations would have 30 days to return them or remit the funds to the Receiver General (Canada’s equivalent of the U.S. Treasury). Politics and process: The bill’s floor defender was Liberal MP Kevin Lamoureux, parliamentary secretary to the government’s House leader. His opening remarks touched on AI deepfakes, foreign interference and administrative penalties — and did not explicitly highlight crypto. Conservatives, led by Pierre Poilievre (who campaigned as crypto-friendly), pressed for clarity on political financing rules and enforcement but ultimately supported sending the bill to committee. Other opposition parties raised concerns about different elements of the legislation but did not center their arguments on the crypto ban. Why resistance was limited: Crypto has had minimal presence in Canadian federal politics. Since Elections Canada classified crypto as a non-cash, in-kind contribution in 2019, no major federal party has publicly accepted cryptocurrency donations and no crypto contributions have appeared in recent election disclosures. History and context: C-25 revives language from Bill C-65, which died when Parliament was prorogued in January 2025. The move toward prohibition tracks recommendations from Canada’s Chief Electoral Officer — who in 2022 urged tighter regulation and in November 2024 recommended an outright ban, citing pseudo-anonymity and verification challenges. Global contrast: The policy diverges from the U.S., where the Federal Election Commission has permitted crypto donations since 2014, and aligns with the U.K., which enacted a crypto donation ban earlier this year amid concerns about concealing foreign money. What to watch next: With C-25 now in committee, details and enforcement mechanisms could change before final votes. For the crypto industry and political donors, the outcome will clarify whether digital assets can play any role in Canadian political financing going forward. Read more AI-generated news on: undefined/news