The federal government has introduced Bill C-25, the Strong and Free Elections Act, aimed at tightening election rules and closing potential loopholes in political financing. The legislation, tabled on March 26, 2026, includes measures to ban cryptocurrency donations, tighten privacy safeguards, and limit foreign influence across the federal political system.
Government House Leader Steven MacKinnon emphasized that the bill reflects recommendations from the chief electoral officer, the commissioner of elections, and the public inquiry into foreign interference.
“These targeted priority amendments address recommendations from the public inquiry into foreign interference in federal electoral process and democratic institutions, and also from the chief electoral officer and the commissioner of Canada elections,” he said.
Banning cryptocurrency and other hard-to-trace donations
Bill C-25 would prohibit registered parties, riding associations, candidates, leadership and nomination contestants, and third-party election advertisers from accepting contributions in cryptocurrency, money orders, and prepaid payment cards. Officials cite the pseudonymity of digital assets as a core concern.
Canada first allowed cryptocurrency contributions in 2019, treating them as non-monetary contributions similar to property. However, no major party publicly accepted crypto donations in either the 2021 or 2025 federal elections. The Chief Electoral Officer, Stéphane Perrault, initially recommended stricter oversight of crypto contributions but later advocated for a full ban, noting that contributor identification remains “fundamentally difficult” under current rules, according to CBC news.
Any improper donations under the new bill would need to be returned, destroyed, or converted and remitted to the Receiver General within 30 days. Administrative penalties could reach up to twice the value of the contribution, with maximum fines increasing to CAD $25,000 for individuals and CAD $100,000 for organizations.
Year-round election protections and privacy measures
The legislation extends rules against foreign interference beyond election periods, covering nomination and leadership contests. Voters would only be allowed to sign one candidate’s nomination paper, and candidates must appoint unique official agents. The government plans to bolster enforcement through the commissioner of elections, who has wide discretion in issuing warnings or fines.
Privacy safeguards would also increase. Federal parties would face stricter requirements for protecting personal data, including shielding the addresses of political fundraisers from public disclosure. The government intends to spend CAD $31.5 million over five years to strengthen Global Affairs Canada’s Rapid Response Mechanism, designed to detect foreign information threats.
Learning from past challenges
Long ballots have posed a recurring challenge in recent elections. A protest group known as the Longest Ballot Committee has flooded certain ridings with dozens of independent candidates, prompting concerns over voter harassment and procedural complexity. MacKinnon labeled these actions “harassing behaviour,” and the legislation seeks to prevent such disruptions.
International context and timing
Canada’s move mirrors recent action in the United Kingdom, where Prime Minister Keir Starmer imposed an immediate moratorium on crypto donations to political parties. Both governments cited risks of foreign interference and illicit finance as motivating factors. The coordinated steps stand in contrast to the United States, where federal election law still permits cryptocurrency contributions and crypto-backed super PACs have grown influential, raising more than $190 million during the 2024 cycle.
Next steps for the bill
Bill C-25 has completed its first reading in the House of Commons. It still faces further readings, committee review, Senate passage, and royal assent before becoming law. Supporters argue the legislation updates election rules to keep pace with technology and emerging threats, while critics question whether targeting largely unused channels, such as cryptocurrency donations, is a necessary priority.
The government also commits to improved communication with Canadians about election threats, issuing after-action reports and weekly briefings to enhance transparency and trust.
“We must continue to be open and to build trust in our democratic systems,” MacKinnon said.
Jordan V.
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